Terrence Michael NolanChapter 7 Bankruptcy AttorneyBaltimore, MD ·
I practice in Maryland, not Delaware, however, I believe the laws on this issue are similar. Estates must advertise in a paper of general circulation that the guy has passed, and anyone believing they are owed money can file a claim with the Estate. The PR or Executor has to settle or resolve all legitimate claims. If there is a dispute there is a mechanism for a prompt hearing. This is a matter of State law. I would strongly suggest that you consult with a local attorney (perhaps selected from the website resources) with experience in this area of law, to offer a free initial consultation and perhaps assist with the process. If this information was helpful to you, even if you do not like or agree with the advice, please let me know by clicking on the “Helpful” or “Best Answer” button. Good luck!
Assuming the estate is not insolvent, all legitimate debts that were the decedent's responsibility must be paid prior to the distribution of assets to the estate's beneficiaries. If the estate is insolvent, then Delaware law will determine the order of priority for the payment of the decedent's creditors from the estate's assets, with some debts likely not being paid or being paid pennies on the dollar. For further information, please consult with an experienced Delaware estate administration lawyer. Good luck to you.
In California, there is a procedure that creditor's and administrators must follow. For example, provided the administrator has independent authority, an administrator can reject a creditor's claim if she believes the claim is wrong or the estate simply does not have the money. It is then up to the creditor to file a lawsuit within so many months after rejection. If the creditor does not file the lawsuit, then the creditor loses its rights to enforce the claim. You definitely should speak with a DE probate attorney.