Creditor Claims Against an Estate or Trust in Florida
When an individual passes away, that person’s assets are collected and distributed in accordance with the person’s will or any intestacy law, should the person die without a will. However, an individual’s debts do not die with the person, and oftentimes, estate creditors may need to collect funds from the decedent’s estate. The creditors’ right to collect will generally supersede the estate assets intended to go to any beneficiaries.
Creditor Claims on Assets
In some cases, it is necessary to file creditor claims against the estate of the deceased to enforce an outstanding debt or liability. This can be a difficult process, but the estate attorneys at GCF can draw upon their years of experience to help estate creditors craft their claim and collect on it according to the law.
There are very specific timelines and procedures governing creditor claims in an estate administration, and it is important that the claimant follows proper procedures to ensure any potential claim is enforceable. Our seasoned lawyers routinely work with individual and institutional creditors in pursuing creditor claims against the estate of the deceased, ensuring these clients the payment to which they’re entitled.
There may be instances where creditors make claims that are not shown in the deceased’s records. This can present certain difficulties, which our lawyers can help resolve so that you get the money that rightfully belongs to you. Should claims be rejected, the estate creditors may need to file lawsuits in court in order to get their payment. This can cause significant delay and expense, and therefore this course of action is only encouraged as a last resort.
When there are not enough assets to pay off the estate creditors, the estate is deemed insolvent. The State of Florida has laws that state how such costs will be distributed should the estate be insolvent. This means that in some cases, the creditor may not receive full satisfaction of the claim or may not be paid at all.
Because of the complexities of paying out debtors, it is important to work with someone who understands the nuances of Florida creditor claims and collection laws to ensure estate creditors adequately collect on their claims. The attorneys at GCF have substantial experience in filing creditor claims against estates and helping creditors get their money. Contact us to schedule a consultation.
