Creditor Claims in Florida Probate: How to Handle Estate Debts the Right Way

Creditor claims in Florida probate can feel overwhelming, especially when debt collectors start calling while you are still grieving. As the personal representative of an estate, you have a legal duty to handle these claims properly. Pay the wrong creditor first, and you could be personally liable. Ignore the process entirely, and the estate could face lawsuits.

Here is the good news: Florida law provides a clear system for managing creditor claims. Once you understand the rules, you can handle estate debts with confidence and protect both yourself and the beneficiaries.

This guide walks you through every step of the creditor claims process, from publishing notice to making final payments.

How Creditor Claims Work in Florida Probate

When someone dies with debts, those debts do not disappear. They become obligations of the estate. The personal representative (also called an executor) must identify creditors, give them an opportunity to file claims, review those claims, and pay valid debts before distributing assets to beneficiaries.

Florida Statutes Sections 733.702 through 733.710 govern this process (Florida Statutes, Chapter 733). The law creates a structured timeline that balances two interests: giving creditors a fair chance to collect legitimate debts while preventing stale claims from holding up estate administration indefinitely.

The Key Deadlines

Understanding the timeline is half the battle:

3-month claims period. Most creditors have three months from the first publication of the Notice to Creditors to file a claim. Miss this window, and their claim is barred forever.

30-day direct notice period. Known creditors who receive direct notice by mail have 30 days from that notice OR three months from first publication, whichever is later.

30 days to object. If you dispute a claim, you have 30 days from when you receive it to file a written objection.

2-year outside limit. Under Florida Statutes Section 733.710, claims not filed within two years after the decedent's death are barred, regardless of whether proper notice was given.

These deadlines are strict. Courts have little sympathy for creditors who miss them. For a complete breakdown of all Florida probate deadlines, see our dedicated guide.

Step 1: Publish the Notice to Creditors

Your first task is publishing a Notice to Creditors in a local newspaper. This might feel old-fashioned in 2025, but Florida law still requires it. The notice starts the clock on the three-month claims period.

What the Notice Must Include

According to Florida Probate Rule 5.241, your notice must contain:

The name of the decedent
The case number
The name and address of the personal representative
The name and address of the personal representative's attorney
The deadline for filing claims (three months from first publication)
A statement that claims not filed within the deadline are barred

Publication Requirements

The notice must appear in a "newspaper of general circulation" in the county where the probate case is filed. Most counties have one or two newspapers that handle legal notices.

Publication schedule: Once a week for two consecutive weeks. The three-month clock starts from the date of first publication, not the second.

Cost: Expect to pay $100 to $250 depending on the newspaper and the length of your notice. Some newspapers charge by the word; others have flat rates for legal notices.

How to publish: Your probate attorney typically handles this. If you are handling probate yourself, contact the legal notices department of a qualifying newspaper in the county. They will format the notice correctly and provide an affidavit of publication for your court file.

Choosing the Right Newspaper

Not every newspaper qualifies. Under Florida Statutes Section 50.011, the newspaper must:

Be published at least weekly
Have been in circulation for at least one year
Be entered as second-class mail matter at a post office in the county

Most counties have established legal newspapers that specialize in these notices. The clerk of court's office can usually tell you which newspapers qualify.

Step 2: Send Direct Notice to Known Creditors

Publishing in a newspaper is not enough. You must also send direct notice to any creditors you reasonably should know about. This requirement comes from the U.S. Supreme Court's decision in Tulsa Professional Collection Services v. Pope (1988), which held that known creditors have a constitutional right to actual notice.

Who Qualifies as a "Known" Creditor?

A known creditor is anyone you have actual knowledge of or could discover through reasonable diligence. This includes:

Bills found in the decedent's mail, home, or records
Creditors listed in the decedent's checkbook or bank statements
Anyone who has contacted you about a debt
Medical providers who treated the decedent
Credit card companies (check the decedent's wallet and mail)
Mortgage lenders and car loan companies
The IRS and Florida Department of Revenue (if taxes are owed)
Contractors or service providers awaiting payment

You do not need to hire a private investigator. "Reasonable diligence" means reviewing the decedent's records, mail, and financial accounts.

What the Direct Notice Must Include

Your direct notice should include:

The decedent's name and date of death
The case number and court
Your name and address as personal representative
The deadline for filing claims
How to file a claim (with the court)
A copy of the published Notice to Creditors (recommended)

How to Send Direct Notice

Send the notice by first-class mail to each known creditor's last known address. Keep copies of everything you send, along with a log of when you mailed each notice. Certified mail provides proof of delivery but is not required by statute.

Extended Deadline for Known Creditors

Here is an important detail many personal representatives miss: known creditors who receive direct notice get the later of:

30 days from when they receive your notice, OR
3 months from first publication

If you send direct notice on day one, they still have the full three months. If you send it at month 2.5, they get 30 days from that notice even if it extends past the three-month mark.

Step 3: Review Each Claim Carefully

As claims come in, review each one. Do not assume every claim is valid just because someone filed paperwork.

What a Valid Claim Must Contain

Under Florida Statutes Section 733.703, a claim must include:

A statement of the basis for the claim
The amount claimed
The name and address of the creditor
The security (if any) and whether the claim is secured or unsecured
Whether the claim is liquidated or unliquidated

Claims that are missing required information may be invalid, but tread carefully here. Courts sometimes allow creditors to fix technical defects.

How to Evaluate Claims

For each claim, ask yourself:

Is this actually the decedent's debt? Check that the account was in the decedent's name. Sometimes creditors mistakenly file claims for a spouse's separate debt or confuse similarly named people.

Is the amount correct? Request itemized statements. Check for payments made after death, duplicate charges, or inflated amounts.

Was the claim filed on time? Check the postmark against your deadline. Late claims are barred.

Is the debt legitimate? Review the decedent's records for evidence of the underlying transaction. Be skeptical of old debts with limited documentation.

Has the statute of limitations run? Florida has different limitation periods for different types of debt (typically five years for written contracts, four years for unwritten). A debt that was unenforceable while the decedent was alive does not become enforceable just because they died.

Was this debt discharged in bankruptcy? If the decedent went through bankruptcy, some debts may have been eliminated.

Request Supporting Documentation

You have the right to ask creditors for documentation supporting their claims. This might include:

The original contract or agreement
Account statements
Proof of amounts owed
Evidence that the decedent (not someone else) was the account holder

Legitimate creditors can provide this information. Debt buyers who purchased old accounts may have limited records.

Step 4: Object to Invalid Claims

If you believe a claim is invalid, you must object within 30 days of receiving it. Failing to object in time means the claim is deemed valid, and you will have to pay it.

Grounds for Objection

Common reasons to object include:

The debt was already paid. You have a cancelled check, bank record, or receipt showing payment.

The amount is wrong. The creditor claimed more than actually owed.

The claim was filed late. It arrived after the deadline.

The debt is not the decedent's. Wrong person, fraud, or identity confusion.

Statute of limitations. The debt was too old to collect even before death.

The debt was discharged. Previous bankruptcy eliminated it.

Technical defects. The claim does not meet statutory requirements.

How to File an Objection

To object, file a written statement with the court explaining your grounds for objection. Serve a copy on the creditor or their attorney by mail or hand delivery.

Your objection should:

Identify the claim you are objecting to
State your specific grounds for objection
Request that the court determine the validity of the claim

What Happens After You Object

Once you object, the creditor has 30 days to file an independent action (a lawsuit) to pursue the claim. If they do not file within 30 days, the claim is barred permanently.

If they do file suit, the court will decide whether the claim is valid. You may need to participate in litigation, though many disputes settle before trial.

When to Involve an Attorney

If you are dealing with a large claim, a dispute with a sophisticated creditor, or uncertainty about whether to object, consult a probate attorney. The cost of legal advice is usually far less than paying an invalid claim.

Step 5: Pay Valid Claims in Priority Order

Once the claims period ends and you have resolved any objections, you can pay valid claims. But you cannot just write checks in whatever order you want. Florida law establishes a strict priority system.

The Priority System Under Florida Statutes Section 733.707

Florida law divides claims into eight classes. You must pay all claims in Class 1 before paying any Class 2 claims, and so on:

Class	Type of Claim	Notes
1	Costs and expenses of administration	Attorney fees, court costs, personal representative compensation
2	Funeral expenses	Up to $6,000
3	Debts and taxes with federal priority	Federal tax liens, certain other federal debts
4	Medical expenses of last illness	Up to $3,500 for expenses in the last 60 days of life
5	Family allowance	Support for surviving spouse and dependents
6	Child support arrearage	Back child support owed before death
7	Debts to government units	Medicaid recovery, state taxes, other government claims
8	All other claims	Credit cards, personal loans, medical bills beyond Class 4, etc.

Why Priority Order Matters

If you pay a lower-priority claim when there are insufficient assets to pay higher-priority claims in full, you could be personally liable for the difference. This is one of the biggest traps for personal representatives.

Example: The estate has $50,000. You pay $20,000 in credit card debt (Class 8) early in the process. Later, you discover the estate owes $45,000 in administration costs and attorney fees (Class 1). Now there is only $30,000 left for Class 1 claims. You may have to pay the $15,000 shortfall from your own pocket.

Handling Pro Rata Payments

If the estate does not have enough to pay all claims within a class, claims in that class are paid proportionally (pro rata).

Example: Class 8 claims total $100,000, but only $40,000 is available after paying all higher classes. Each Class 8 creditor receives 40% of their claim.

Secured vs. Unsecured Creditors

Secured creditors (mortgages, car loans) have special rights:

They can rely on their lien without filing a claim at all
They can foreclose or repossess the collateral
If the collateral is worth less than the debt, they can file a claim for the deficiency

Paying off a secured debt early often makes sense if you are selling the collateral anyway. The mortgage must be satisfied to transfer clear title to a buyer.

What If the Estate Cannot Pay All Debts?

When an estate's debts exceed its assets, the estate is "insolvent." This changes how you handle claims.

Insolvent Estate Procedure

An insolvent estate pays claims in priority order until the money runs out. Lower-priority creditors may receive nothing.

Key points about insolvent estates:

Beneficiaries receive nothing (all assets go to creditors)
Beneficiaries are NOT personally liable for unpaid debts
Secured creditors can still pursue their collateral
You may need court approval before making distributions
Consider filing a Petition for Discharge to formally close the estate

Beneficiaries Are Protected

This is worth emphasizing: Beneficiaries are not responsible for the decedent's debts beyond what they inherit from the estate. If the estate is insolvent, unpaid debts simply go uncollected.

Some debt collectors try to convince grieving family members that they are personally responsible. This is almost never true (with narrow exceptions like co-signed debts or joint accounts). Do not let collectors pressure you into paying from personal funds without legal advice.

Special Situations

Handling Credit Card Debt

Credit card debt is unsecured and falls into Class 8 - the lowest priority. Here is what you need to know:

Authorized users are not liable. If your parent added you to their card as an authorized user, you are not responsible for the balance. Only the primary account holder's estate owes the debt.

Joint account holders may be liable. True joint accounts (where both people signed the original application) create liability for both parties. The surviving joint holder remains responsible for the full balance.

Credit card companies cannot collect from beneficiaries personally. They can only collect from estate assets. Once estate assets are exhausted, they have no further recourse.

You can negotiate. Credit card companies often settle for less than the full balance, especially if the estate is insolvent or the amount is disputed.

Handling Medical Debt

Medical bills get complicated because Florida creates two classes of medical debt:

Class 4: Medical and hospital expenses from the last 60 days of the decedent's life, capped at $3,500. These get relatively high priority.

Class 8: All other medical debt falls into the general unsecured category.

Tips for medical debt:

Request itemized bills (you will be surprised how often errors appear)
Check whether Medicare, Medicaid, or insurance already paid
Ask about hospital charity care programs
Negotiate - providers often accept less than the full bill
Verify the debt is actually the decedent's (not the surviving spouse's)

Government Claims and Medicaid Recovery

Government claims (Class 7) include:

Medicaid estate recovery. Florida can seek reimbursement for Medicaid benefits paid on the decedent's behalf. This typically affects nursing home residents who were on Medicaid.
State and local taxes. Property taxes, state income taxes, etc.
Other government debts. Student loans (if federal), overpayments of benefits, etc.

Medicaid recovery deserves special attention. Under Florida Statutes Section 409.9101, the Agency for Health Care Administration can file a claim against the estate for Medicaid benefits paid after age 55. Certain assets, including homestead property in some circumstances, may be protected. Consult an elder law attorney if Medicaid recovery is an issue.

Handling IRS and Tax Debts

Federal tax debts (Class 3) include:

Income taxes owed by the decedent
Estate taxes (for large estates)
Trust fund recovery penalties (if the decedent owned a business)

The IRS has special collection powers. Request a copy of the decedent's tax transcripts to understand what is owed. File final income tax returns promptly. For complex tax situations, hire a CPA or tax attorney.

Creditor Claims in Summary Administration

If the estate qualifies for summary administration (estates under $75,000 or where the decedent died more than two years ago), the creditor process works differently.

No Formal Claims Period

Summary administration does not have a three-month claims period. Instead:

The petition must list all known creditors
You must state that all known debts have been paid or that the creditors have consented
Notice is given to creditors as part of the petition process

Creditor Liability Follows the Assets

Here is the catch: in summary administration, creditors who were not paid can pursue beneficiaries who received assets. The beneficiaries are liable up to the value of what they received.

This makes summary administration risky when there are significant unpaid debts. If the estate has substantial creditor issues, formal administration provides more protection.

For more on when to use each type of administration, see our guide on formal vs. summary administration.

Debts That Are NOT Estate Obligations

Do not pay debts that are not actually the estate's responsibility:

Debts in someone else's name. The estate is not responsible for a spouse's separate debts, a child's debts, or anyone else's obligations.

Expired debts. If the statute of limitations ran before the decedent died, the debt is unenforceable.

Previously discharged debts. Debts eliminated in bankruptcy do not come back when someone dies.

Debts secured only by exempt property. Some assets (like certain homestead property) are exempt from creditor claims under Florida law.

Fraudulent claims. Scammers sometimes file false claims against estates. Verify everything.

Dealing with Aggressive Debt Collectors

Some collectors use aggressive tactics to pressure families during a vulnerable time. Know your rights:

The Fair Debt Collection Practices Act applies to debt collectors
Collectors cannot harass you or make false statements
You can demand written verification of any debt
You can tell collectors to stop contacting you (in writing)
Collectors cannot collect from family members who are not legally responsible

If a collector is harassing you or making false claims, document everything and consider consulting a consumer protection attorney.

Timeline for Handling Creditor Claims

Here is a typical timeline for managing creditor claims in formal administration:

Week	Action
Week 1	Publish Notice to Creditors; send direct notices to known creditors
Weeks 1-2	Notice published in newspaper (two consecutive weeks)
Weeks 2-12	Receive and review claims as they arrive
Ongoing	Object to invalid claims within 30 days of receipt
Month 3	Claims period ends (3 months from first publication)
Month 4	Resolve any pending objections or litigation
Month 4+	Pay valid claims in priority order
After payment	Prepare for distribution to beneficiaries

The entire creditor claims process typically takes four to six months, though disputes can extend this timeline.

Common Mistakes to Avoid

Mistake 1: Paying Debts Before the Claims Period Ends

It is tempting to pay bills as they arrive, but this creates problems. You do not know the full scope of claims until the deadline passes. Paying lower-priority debts early can leave you short for higher-priority claims.

Exception: You can pay Class 1 expenses (administration costs) as they arise. Secured debts can be paid if you are selling the collateral.

Mistake 2: Ignoring Claims

Failing to object to an invalid claim within 30 days means you must pay it. Review every claim promptly.

Mistake 3: Paying from Personal Funds

Never pay estate debts from your personal money. All payments should come from estate accounts. If you pay personally, you may not be reimbursed.

Mistake 4: Missing the Publication Requirement

No published notice means no three-month deadline. Creditors could file claims for much longer, delaying estate administration.

Mistake 5: Distributing Too Early

If you distribute assets to beneficiaries before paying all valid claims, you could be personally liable. Wait until the claims period ends and all valid claims are paid. See all common Florida probate mistakes to avoid costly errors.

Frequently Asked Questions

How long do creditors have to file claims in Florida probate?

Three months from the first publication of the Notice to Creditors. Known creditors who receive direct notice have 30 days from that notice or three months from publication, whichever is later.

Are beneficiaries responsible for the decedent's debts?

Generally, no. Debts are paid from estate assets. Beneficiaries are not personally liable beyond what they inherit. If the estate cannot pay all debts, unpaid debts go uncollected.

What happens if I miss the deadline to object to a claim?

The claim is deemed valid, and you must pay it from estate assets (assuming funds are available after higher-priority claims).

Can creditors go after property that passed outside of probate?

Typically, no. Assets that transfer by beneficiary designation, joint ownership, or trust are generally not available to probate creditors. However, Medicaid recovery and certain other claims can reach some non-probate assets in specific circumstances. Learn more about how to avoid probate in Florida.

What if a creditor files after the deadline?

Late claims are barred. You have no obligation to pay them, and the creditor cannot sue the estate.

Do I need a lawyer to handle creditor claims?

Not always, but complex situations benefit from legal guidance. Consider an attorney if you are dealing with an insolvent estate, disputed claims, Medicaid recovery, tax issues, or lawsuits from creditors.

Next Steps

Managing creditor claims is one of the most important parts of probate administration. Here is what to do next:

Publish notice immediately after being appointed as personal representative
Send direct notices to all known creditors
Track all claims and their deadlines carefully
Object promptly to invalid claims
Wait for the claims period before making distributions

Need help calculating estate costs? Use our Florida probate fee calculator. For a complete overview of the process, see our guide to the Florida probate process.

Sources:

Florida Statutes, Chapter 733 - Probate Code (leg.state.fl.us)
Florida Statutes Section 733.702 - Limitations on Presentation of Claims
Florida Statutes Section 733.707 - Order of Payment of Expenses and Obligations
Florida Statutes Section 733.710 - Limitations on Claims Against Estates
Florida Statutes Section 409.9101 - Medicaid Estate Recovery
Florida Probate Rules, Rule 5.241 - Notice to Creditors
Tulsa Professional Collection Services v. Pope, 485 U.S. 478 (1988)

This guide provides general information about creditor claims in Florida probate. Every estate is different. Consult a Florida probate attorney for guidance specific to your situation.

Last updated: January 2026