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Fax creditor signature service

the probate estate is open and you are a creditor or are the personal representative and have to deal with a creditor hi I'm Darren filming from the probate pro and we're going to spend this session discussing creditors within mission probate statute specifically we're looking at the highlighted areas here on this general timeline creditors are individuals or entities that the estate may owe money to so they are a liability of the probate estate not an asset but rather an expense or liability upon which the estate may owe those creditors are entitled to notice in two primary ways one is notice any known creditors these are creditors that would have to be reasonably identified by a personal representative by reviewing the mail or just their general knowledge of the deaths of the person that died they are entitled to a specific form called a notice to known creditors also creditors that you may not be aware of are entitled to notice through publication this is done through a legal notice in the legal news or in a general circulation newspaper within that area to provide notice to any creditors that are unknown creditors that you may not be aware of those could include Visa or credit card bills medical bills or even they a neighbor down the street now as a personal representative if you perform both of these functions correctly giving notice to known creditors as well as publishing you absolve yourself of liability if you then distribute the estate and those creditors have failed to come forward so adherence to this these responsibilities is really critical to a role in serving as personal representative and on the counter side if you are a creditor you have to make sure that you follow the requisite steps to be assured that you have properly perfected your creditor so let's unpack this and discuss the various processes within the areas that I've just identified first is the publication notice this is done at the beginning of a probate estate after a letter of authority is issued you publish in the legal news as we said for any unknown creditors this publication goes into that legal notice and really this is a publication that most people don't read but people who are creditors do read these publication notices and look to see if there is a match between an estate that has been opened up and is publishing and a debt that may be owed to their company so it's there it's kind of an archaic way of giving notice but it is statutorily required that you publish for any of the unknown creditors to give them due process and a right to be able to be able to file a claim the next document is the creditor form that begins this process of identifying when somebody claims to be a creditor of the estate they complete the scale form the state court administrator forms statement improve claim in that form you identify that you are submitting a claim against the estate you identify the estate name and of course the creditor which is the party upon which claims is owed money and their address and then a description of the claim a description of what is oh is that a funeral and burial expenses that a credit card is it alone as much description as as possible to give the personal representative and understanding of what the debt is that you are asserting and of course any amount that's owed so they can decide whether the personal representative can decide whether they're going to allow the creditor claim or disallow the creditor claim now this the filing of this form is time barred so you have to do it within a certain requisite time under Michigan's probate statute which is with either within notice of known creditor being provided to you or within the publication period or if they overlap within 30 days of the publication so for further clarification on the timeline upon which you must file a creditor claim please carefully review Michigan's statute and Court Rule the next step is a signature of the claimant the creditor claimant who is asserting the claim as well as the description of the claim itself with additional documentation and then on the backside of this form is a proof of service to allow you to certify that you have afforded the personal representative with notice you also can file this with the probate court itself and we do recommend that you do that so it becomes a docketed entry within the probate file now once a personal representative is served with a claim they can as we said earlier allow the claim or disallow the claim with an allowance of a claim they don't really have to take any steps but with a disallowance of claim they have to complete this scale form which is identified here this notice a disallowance acclaim gives notice to the creditor that the clock is beginning in their steps that they have to take before they lose or a bard with their claim and if they appropriately handle the disallowance correctly they can continue to perfect their creditor claim against the estate within that you're going to identify as personal representative of the estate name and then the creditor name and further whether you're allowing or disallowing the claim in whole or in part so for example sometimes creditor proof of claims have many different items and this particular form allows you to identify which part of the claim you object to in which part you are lucky you are allowing now a personal representative can disallow a claim and then allow it and also can allow a claim and then disallow it so the burden is really on the creditor and the clock is on the creditor to prefer they're claimed within the statutory timeframes what we call the statute of limitations so again adherence to Michigan's Court roland statute is really critical to the creditor claim now it's important about this is that after the personal representative has disallowed a creditor claim the the creditor has a time frame which is 63 days after the mailing of this particular form so on the proof of service that's completed by the personal representative if a lawsuit is not filed within 63 days in the appropriate District Circuit federal or probate court the claim may be barred forever so adherence again to the rule is really critical and it's not done by petition it's done by a civil action a lawsuit that's filed against the estate demanding that your claim be allowed otherwise your time barred and the claim is no longer needed to be paid by the estate now under Michigan statute there is a prioritization of how the assets of the estate get paid we call that the priority of claim and under Michigan statute seven hundred point three eight oh five it identifies based on the amount of assets who is going to get paid based on whether you are a creditor or whether your in air or an administrative expense so if you carefully review that statute it can tell you whether that creditor claim even if allowed is ever going to get paid by the probate estate again this is a sampling brief explanation of a creditor statute and the forms a part of michigan's creditor provisions but to really understand it you have to go deeper into Michigan's statute as well as the court rules and we're happy to guide you through this or to provide legal representation give us a call at 877 T or firm or visit us and the probate pro dot-com