When someone dies with owing debt, the debt does not go away.
As long as only deceased signed for responsibility (application, note, and mortgage) with the creditor, the Decedent’s debt isn’t inherited; the Estate of assets of the decedent will be used to pay their debt.
Items Exempt from Creditor claims -see III Probate Assets and Non Probate Assets
The PR will conduct a diligent search to locate “known or reasonably ascertainable” creditors and notify them of the time by which their claim must be filed. Notice to Creditors (Fla Stat 733.2121)
- Funeral,Medical,Facility stay,Credit cards,Car loans,Personal loans,Leases,etc.
- Home:Mortgage,HOA,Taxes,Insurance,Utilities,Security System,Leases with the home
- Secure, Property Preservation (lawn, pool), Clean up, Repairs, Eviction, Permits,Code violations, Judgements, Mechanics liens,IRS liens.
- “Notice to Creditors” is published in the newspaper for 2 consecutive weeks.In addition to the notice, all known creditors are also served via certified mail.
- From the Notice first published in the local newspaper, in Florida, the Creditor has 3 month from notice as a deadline to file a claim. (Please review timelines Florida Statutes Section 733-702(2)
- If no Notice published, they have a statute of limitations of 2 years from date of death.
- A Creditor files a claim with the court to obtain payment unless the PR includes the claim.
Any creditor claim should never be ignored! The PR could become liable for the claim.
Object a claim: Creditor will have 90 days to act on a rejected claim. 1st, it’s done in writing. The PR or any interested party can object.
Valid claim: Pay them within 4 months of their filing.
Creditor debt greater than Estate Assets: Means the estate is insolvent. The deceased family will not receive any inheritance, but will not be responsible for any decedent’s debts.
- This includes any previously unpaid debts, other liens or judgments, debts resulting from medical care, funeral expenses, outstanding taxes, and other encumbrances.