If someone you know passed away while owing you money, you may be able to collect on that debt by making a claim against their estate. While many individuals won’t do this because what they’re owed is minimal, you have a right to do so. You lent money or assets, so you should be paid what you’re owed.
To file a claim against the estate, you will need to file a claim in the probate court that is handling the person’s estate. You may need to call several courts until you can figure out which one will handle your specific claim. You will then need to provide evidence that the debt is owed, such as a contract or promissory note.
Once you do this, you’ll need to file the claim form with the probate court online, by mail or through other methods based on the court’s preferences. Then, you will need to wait to see if the debt is repaid.
Will you always be able to get compensated for debts owed to you by the deceased?
Not necessarily. When someone dies and has money and assets in their estate that are available to pay debts, creditors can be repaid. However, the order of repayment may vary based on the circumstances, and if you don’t file early, you may miss your claim window.
You will find out if your claim is accepted or denied. It may also be partially rejected by the personal representative of the estate. If the claim is denied, you may be able to negotiate further to get compensated or file a civil lawsuit to collect on the debt.
Collecting a debt may be complex for individuals, so learn more about the law
Sometimes, collecting a debt is complex. That’s why individuals who want to make a claim against an estate may want to work with someone familiar with probate court and the laws surrounding debt collection. Depending on the size of the claim and what you aim to recover, there may be various ways to initiate a claim and make sure you receive as much compensation as possible.