How to Deal with Creditor Disputes in Estate Administration

Once a personal representative is identified in Orphan’s Court in the State of Maryland, the probate process has officially been initiated. A Notice of Appointment announces the appointment of the personal representative of the estate. This notice must be published in the newspaper to establish deadlines for creditors to file against the estate.

There may be many types of debts filed against the estate including loans for cars, property and businesses. There may also be medical bills and credit card debt. There may even be more complex matters such as lawsuits, judgments and liens.

The personal representative is charged with assessing the validity of these creditors and the debts filed against the estate. Most of the time, the debts are valid and must be paid from the estate before any distributions may be made to beneficiaries. However, there may be cause for denying the validity of a creditor or debt. The personal representative may notify the creditor in writing of the claim rejection. The creditor then may choose to sue the estate. If the creditor does not properly stake his claim, he will be barred from future claims against the estate.

Creditor issues may arise in any estate administration, large or small. Personal representatives do not have to handle these issues alone. Experienced estate administration attorneys at Stouffer Legal are here to help. For more information on creditor disputes in Maryland probate, please contact Stouffer Legal for a consultation at 443-470-3599.