Florida Probate Creditors: A Guide to Handling Creditor Claims Against an Estate

Introduction When a loved one passes away, families are often left with grief and a mountain of financial questions.

Who is responsible for the credit card bills? What happens to the mortgage? One of the most critical aspects of probating an estate is handling Florida probate claims.

Many Personal Representatives fear they will be personally liable for a claim against an estate. However, under Florida law, debts are generally owed by the decedent’s estate, not the heirs.

This guide explains the strict procedures for probate creditors claim management, the timeline for notifying creditors, and how to protect estate assets.

Consulting with a qualified Florida probate attorney is highly recommended to navigate the complexities and strict deadlines of Florida probate law.

Probate Administration and the Role of Creditors

A creditor claim against estate is a formal request for payment filed by an individual or entity to whom the decedent owed money. These can range from medical bills to written obligations like loans.

In a probate proceeding, the Personal Representative has a fiduciary duty to identify debts, determine their validity, and pay them—but only if there are sufficient assets and the claims are valid.

Notifying Creditors: The First Step

The process begins with the Notice to Creditors Florida. The Personal Representative must publish this notice in a local newspaper.

First Publication: The 3-month creditor period usually begins on the date of the first publication of the notice.
Direct Service: The Personal Representative must also serve a copy of the notice to known creditors.
Inventory: An inventory of the decedent’s assets must be filed with the court within 60 days of the personal representative’s appointment.

Under Florida Statute 733.702, creditors have a strict deadline.

A claim is timely filed if it is submitted within 3 months after the time of the first publication of the notice to creditors or, as to creditors required to be served with a copy of the notice to creditors, within 30 days after the date of service on the creditor, whichever occurs later.

Florida Probate Claims: The Statement of Claim Process

To get paid, a creditor must file a statement of claim form Florida. This document outlines the basis for the debt.

Filing: The person filing or the creditor brings the claim by filing it with the clerk of the probate court.
Content: The claim must include the basis for the debt, the amount, and whether the debt is contingent or unliquidated.
Service: The clerk will serve a copy to the Personal Representative.

Once filed, the Personal Representative must review each claim and decide whether to pay it. If the estate is liable, the debt includes the principal plus accrued interest regarding written obligations of the decedent providing for such interest.

Contingent Claims and Complex Debts

Not all debts are straightforward. Some are unmatured claims (due in the future) or contingent claims (dependent on an event).

Making provisions: The court may order the estate to retain funds or make arrangements for making provisions for payment of these claims.
Other security: The court may require other security or an agreement disposing of the claim to ensure the creditor is adequately secured without delaying the estate closure.

Common Myths About Florida Probate Claims

Handling debts after a death is confusing, leading to many misconceptions. Below, we debunk common myths using the realities of the Florida Probate Code.

Myth 1: The Personal Representative Must Pay Debts Immediately

Fact: No personal representative shall be compelled to pay the debts of the decedent until after the expiration of 5 months from the first publication of notice to creditors. While the Personal Representative must resolve creditor claims before distributing any property to heirs or beneficiaries, they are not required to rush. The law provides this buffer to ensure all claims pursuant to the statute are received and analyzed before any money leaves the estate.

Myth 2: I Can Just Pay Bills As They Arrive Without Help

Fact: You are required to perform a “diligent search” for creditors, not just pay the mail. Many people believe they don’t need professional estate claim services if they just pay bills as they come in. However, Florida law requires you to actively search for “known or reasonably ascertainable creditors.” Failing to do so can result in personal liability. Proper estate claim services ensure you meet this diligent search standard while probating an estate.

Myth 3: Small Estates Can Ignore Creditors Claims

Fact: Even in Summary Administration, debts must be addressed. A common misconception is that Creditors claims do not apply to small estates or “Summary Administration.” This is false. A claim against an estate is valid regardless of the estate’s size. Before a court issues an Order of Summary Administration, you must prove that creditors have been paid or that provisions have been made. Ignoring Creditors claims can lead to beneficiaries being sued after distribution.

Myth 4: Heirs Are Personally Responsible for Estate Debts

Fact: Creditor claims in Florida probate include debts owed to individuals or entities by the decedent, not the family. Unless a family member co-signed a loan, they are not liable. However, if the estate does not have sufficient assets, the shares of heirs and beneficiaries may be reduced to pay debts. This means the inheritance shrinks, but the heir does not pay out of pocket.

Myth 5: Creditors Can File Claims Whenever They Want

Fact: Claims filed after the deadline in Florida probate are generally barred. Creditors must submit their claims within a statutory timeframe to be considered valid against the estate. Specifically, all claims are generally barred if not filed within two years of the decedent’s date of death, regardless of the probate case status. This “Statute of Repose” is a strict deadline under the death act provisions of Florida statutes.

Myth 6: All Creditors Get Paid Equally

Fact: Valid claims are paid according to a specific priority order set by the Florida Probate Code. It is not “first come, first served.” Administration costs and funeral expenses are paid first. Common examples of creditor claims include medical bills, credit card debts, and mortgage payments needing payment from the estate’s assets according to priority. If there aren’t enough assets, lower-priority creditors (like credit cards) may receive nothing.

How Lorenzo Law Evaluates Florida Probate Creditors Claims

At Lorenzo Law, we do not simply pay every bill that arrives in the mail. When probating an estate, we apply a strict evaluation process to every statement of claim form Florida received.

Our first step is to verify if the claim was timely filed pursuant to Florida Statute 733.702. We analyze whether the person brings the claim within the strict three-month window or if it falls outside the statute of repose under the death act provisions.

Next, we scrutinize the specific particular item listed in the claim to ensure it is a valid debt owed by the decedent and not a scam or an error. We also examine if the debt is adequately secured by collateral or if it is an unsecured debt that sits lower on the Florida priority of claims.

Finally, we determine if the personal representative’s proof of payment or prior discharge exists, ensuring the estate never pays the same debt twice.

Risks and Benefits of Disputing a Claim Against an Estate

Challenging a creditor claim against estate is a strategic decision that carries both risks and rewards in a probate proceeding.

Risks:

Litigation Costs: If the objection results in an independent action requiring trial, the estate may face significant legal costs.
Attorney’s Fees: If the creditor prevails, the court may order the estate to pay the creditor’s costs and or attorney’s fees, draining resources from the beneficiaries.
Delays: A dispute can extend the timeline of administration, delaying the distribution of assets.

Benefits:

Asset Preservation: Successfully striking down invalid Florida estate claims preserves more money for the heirs.
Correct Priority: It ensures that high-priority debts (like funeral expenses) are paid before low-priority debts (like credit cards), in the manner provided by Florida law.
Fraud Prevention: It stops invalid or fraudulent probate claims from depleting the decedent estate.

Costs and Timeframes for Resolving a Creditor Claim Against Estate

Understanding the financial and temporal landscape is crucial for a Personal Representative.

Timeframes: The probate creditor period generally lasts 3 months from the first publication of the notice. However, if an objection is filed, the creditor has 30 days to file a lawsuit. The entire resolution can take 6–12 months, or longer if litigation arises.
Costs: The cost of filing a claim against an estate is nominal for the creditor, but defending it involves legal fees.
Who Pays: Generally, the estate pays for the defense of claims.
Drivers of Cost: The complexity of the claims pursuant to the statutes and the aggressiveness of the creditor are the main drivers. If a creditor files a lawsuit in probate court, costs rise significantly compared to claims settled via negotiation.

The Best Approach for Handling Florida Probate Claims

For most Personal Representatives, the best choice is to retain a Florida probate attorney immediately upon appointment. This is the only way to ensure every statement of claim probate florida is handled correctly.

Attempting to manage probate creditors claim issues without counsel exposes the Personal Representative to personal liability. Professional legal counsel is the best choice for:

Complex Estates: Where debts exceed assets (insolvency).
Disputed Debts: Where the validity of the debt is in question.
Asset Protection: When trying to shield exempt assets like homestead from creditor claims.

Alternative Options for Resolving Estate Debts

Litigation is not the only path. We often resolve estate claim disputes using the following methods:

Negotiation and Settlement: We frequently negotiate with creditors to accept a reduced amount to avoid the cost of litigation.
Insolvency Proceedings: If the estate funds are insufficient, we petition the court to declare the estate insolvent and pay creditors only the proportionate amount available in their class.
Satisfaction and Release: We ensure that once a debt is paid, the creditor files a Satisfaction of Claim in the probate court to officially clear the record.
Independent Action Defense: If a creditor files suit, we defend the estate in the civil court, ensuring estate claim services cover full litigation support.

Personal Representative and Objecting to Invalid Claims

Just because a creditor claim against estate is filed does not mean it must be paid. The Personal Representative or other interested person may object.

The Objection Process

If a claim is improper, the Personal Representative individually or on behalf of the estate can file a written objection.

Florida Probate Objection to Claim Form: This document is filed with the court and served on the creditor.
Service: If an objection is filed, the person filing it must serve a copy of the objection as provided by the Florida Probate Rules.
Timeline: If a claim is objected to, the claimant has 30 days to bring an independent action (a separate lawsuit) or a declaratory action to establish the validity of the claim.
Consequences: If the creditor fails to file this action within the time limited, the claim is barred without court order.

Note: The objection itself is not an objection that ends the matter; it forces the creditor to sue. The objection constitutes a rejection of the claim, requiring the creditor to prove their case in an appropriate proceeding or requiring trial.

Attorney’s Fees and Costs

If a creditor brings an independent action and wins, the court generally enters a judgment establishing the validity of the claim.

This judgment may include costs and or attorney’s fees if provided by contract or statute. Conversely, if the estate wins, the creditor may be liable for the estate’s fees.

Florida Statutes on Priority of Payments

When an estate does not have such assets to pay every debt, Florida priority of claims (Section 733.707) dictates who gets paid first. Estate claim services involve categorizing these debts:

Class 1: Expenses of administration and compensation for the Personal Representative and attorneys.
Class 2: Funeral expenses (up to $6,000).
Class 3: Federal debts and taxes.
Class 4: Medical expenses for the last 60 days of the last illness.
Class 5: Family allowance.
Class 6: Child support arrearages.
Class 7: Certain business debts.
Class 8: All other claims (including credit cards and judgments).

If there are not enough assets to pay all claims in the same class, they are paid in a proportionate amount.

Florida Estate Claims: Deadlines and Limitations

Time is critical in estate probate law.

Statute of Non-Claim: Creditors must submit their claims in writing to the personal representative within a specified timeframe to be considered valid.
Two-Year Rule: All claims are generally barred if not filed within two years of the decedent’s date of death.
Extension: The court may extend the time for payment of any claim upon a showing of good cause, provided the Personal Representative does not delay unreasonably.

What Constitutes a Claim?

A claim constitutes a liability of the decedent estate arising before death. This includes judgment change requests or disputes over a debt owed.

However, disputes regarding the will itself are different. Litigation claims involve disputes over the will or estate administration, such as contesting a will based on fraud or undue influence, or disputes among heirs or beneficiaries over asset distribution.

When an Interested Person Objects

Sometimes, a beneficiary or interested person feels the Personal Representative is approving invalid claims. An interested person objects by filing their own objection to the claim.

In cases where the Personal Representative has a conflict of interest (e.g., the PR is also a creditor), the court may appoint an administrator ad litem to represent the estate in that specific matter.

Frequently Asked Questions About Florida Probate Claims

Q: What is a Statement of Claim Florida? A: It is the official document a creditor files in the file number of the estate to demand payment.

Q: How do I start the claims process? A: To file a probate claim in Florida, one must start by filing a Petition for Administration with the circuit court in the county where the deceased lived.

Q: Can a Personal Representative be liable? A: Generally, no, unless there is a breach of duty. However, a Personal Representative may be liable if they pay lower-priority creditors before higher-priority ones.

Q: What happens if I receive a Florida Notice to Creditors? A: You must file claim against estate within the time authorized by Florida statutes. The claim must be timely filed pursuant to the notice.

Q: What if the claim is contingent? A: The court determines how to handle contingent claims, often by reserved amount strategies to ensure funds exist if the action accrues.

Q: Does interest accrue on debts after death? A: Yes. Interest shall be paid by the personal representative on written obligations of the decedent providing for the payment of interest.

Q: How long does the claimant have to sue if I object? A: If a claim is objected to, the claimant has 30 days to file an independent action to enforce the claim.

Q: What happens if the creditor does nothing after an objection? A: No action or proceeding on the claim may be brought against the personal representative after the time limited above, and the claim is barred without court order.

Advanced Strategies for Resolving Disputed Estate Liabilities

When probating an estate, the Personal Representative often faces complex disputes that go beyond simple bill payment.

At Lorenzo Law, we employ advanced legal strategies to protect the decedent estate from unwarranted financial exposure. We understand that a claim against an estate is not merely a bill—it is a legal pleading that must meet strict evidentiary standards.

Challenging Unsubstantiated Creditors Claims

Not all creditors claims are valid, even if the debt initially appears legitimate. When we encounter questionable liabilities, we look for grounds to file a formal objection.

Common defenses include the statute of limitations, affirmative defenses such as equitable estoppel or waiver, and lack of proper documentation.

If an objection is filed, the burden shifts entirely to the creditor. They are time limited to a strict 30-day window to file an independent action or a declaratory action in the proper court to prove their case.

If they fail to file this separate lawsuit and serve the Personal Representative within that window, the claim is barred without court order.

This powerful mechanism often forces creditors to walk away from dubious or undocumented debts rather than incur the costs of litigation, effectively saving the estate thousands of dollars.

Scrutinizing the Statement of Claims Form Florida for Legal Defects

A common area where creditors fail is in the technical preparation of their filings. We meticulously review every statement of claims form Florida (technically referred to as a Statement of Claim) for fatal legal defects.

We verify if the claim was timely filed pursuant to the strict three-month window following the first publication of notice. We also check if the creditor properly served a copy to the attorney of record as required by Florida probate rules.

Often, creditors fail to attach the underlying written instruments (contracts or promissory notes) as required, or they fail to specify if the claim is contingent or unliquidated.

Identifying these technical defects allows us to leverage estate claim services to strike invalid filings, ensuring that only verified, legitimate Florida probate claims are paid from your inheritance.

Contact a Florida Probate Lawyer

The Florida Probate Code is complex. Whether you are a Personal Representative trying to resolve creditor claims or a creditor seeking payment of a debt owed, legal guidance is essential.

Claims filed after the deadline in Florida probate are generally barred and may require independent lawsuits to be filed if there are objections to claims.

The Personal Representative is responsible for securing assets, managing legal and financial matters, and keeping beneficiaries informed throughout the probate process.

If you need assistance with estate claim issues, probate claims, or understanding Florida probate rules, contact Lorenzo Law today.

We help with:

Filing the Statement of Claim Probate Florida.
Defending the estate against invalid Florida estate claims.
Navigating Florida probate objection to claim form procedures.
Ensuring compliance with Florida Statute 733.702.
Providing personal representative’s proof of proper administration in the manner provided by law.

Call us today for a consultation.

Legal Disclaimer This article is informational only and not legal advice. Consult an attorney for advice regarding your specific situation, specifically regarding other subsections of the probate code, particular item disputes, or order relieving liability.

Contact a Florida Probate Attorney to Resolve Creditor Claims

If you are currently probating an estate and facing aggressive creditor claims, do not navigate this process alone. A single missed deadline or improper payment can lead to personal liability.

At Lorenzo Law, we provide comprehensive estate claim services to ensure every claim against an estate is handled strictly according to Florida law.

We aggressively defend the decedent estate against invalid debts and ensure that your family’s inheritance is protected.

Whether you need help filing a statement of claim form Florida or objecting to a creditor claim against estate, we are ready to fight for you.

We serve clients statewide, including the following counties:

Miami-Dade County
Broward County
Palm Beach County
Orange County
Hillsborough County
Pinellas County
Duval County

We also represent families in major cities across Florida, including:

Miami
Fort Lauderdale
West Palm Beach
Orlando
Tampa
Jacksonville
Naples

Contact us now. Don’t wait until the deadline passes. 📞 Call Lorenzo Law today for a consultation with an experienced Florida probate attorney.

Let us handle the Florida probate claims so you can focus on your family.

Florida Probate Creditors: Guide to Handling Creditor Claims