Collecting Debts From An Estate
Jan. 14, 2023
In New Jersey, creditors can file a claim for payment of a debt owed by an estate during the probate process.
The probate process is a legal proceeding in which the estate of a deceased person is administered. It involves the distribution of the deceased person's assets to their heirs or beneficiaries, and the settlement of any debts or taxes owed by the estate.
To file a claim against an estate, a creditor must follow the procedures outlined in the New Jersey probate law. This typically involves filling out a claim form and providing supporting documentation to prove the debt is owed. The claim form must be filed with the probate court and served on the personal representative of the estate.
If the estate has sufficient assets to cover the debt, the personal representative will pay the claim from the estate's assets. If the estate does not have enough assets to pay all of the claims, the claims will be paid on a pro rata basis, with each creditor receiving a share of the available assets in proportion to the amount of the claim.
It is important to note that creditors must file their claims within a certain time frame, or they may be barred from recovering the debt. In New Jersey, creditors generally have six months from the date of the first publication of the notice to creditors to file their claims.