Notice of Disallowance of Claim

Darren Findling of The Probate Pro discusses the process of addressing creditors with a Notice of Disallowance of Claim.

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Legal Disclaimer:
This video is for educational purposes only and is not to be considered legal advice. The Probate Pro, PLC, QuietTitle.com and any other entities of The Darren Findling Law Firm, PLC do not claim to be an “expert” or “specialist” in their legal practice areas.

The Notice of Disallowance of Claim. Hi, I’m Darren Findling of The Probate Pro we're going to examine the creditor process and the notice that is used to disallow a creditor claim in the probate court we're referring to a SCAO form that's a state court administrative order form in this case on the bottom left corner you'll see it's pointing to pc580 pc stands for probate core so this is pc form 580. if you need this form you can of course google it or contact my office we're happy to provide one free of charge so with all of these state court administrative order forms the court rule and statutes are identified in the bottom right corner there's a few of them here I’m going to hover that arrow to show you that these statutes govern the basis for the use of this form now this form can be used in a probate or trust administration process as well as within a guardian and conservatorship estate so it has both use in probate administration as well as guardian and conservatorship administration so when would it be used well let's look at the statutes that are referenced in this particular form 700.3806 is the allowance and disallowance of creditor claim process and the idea is that in administration of an estate there's an orderly process that allows the personal representative to give notice to known creditors by sending them a particular notice that is expressed or explained in another video that I’ve done as well as publishing for unknown creditors and again that process is explained under another form within another video but once that noticing goes out creditors will start identifying that you or the estate may be obligated as a creditor meaning the estate or personal representative or conservator owes money to another party that party could be an individual it could be a medical provider it could be a credit card company it could be anyone but those creditors are going to send proofs of claim another form that is explained in another video through YouTube you can check it out but once that has occurred these creditors are submitting claims the fiduciary the personal representative trustee guardian or conservative can say I allow it meaning I’m accepting the creditor we're going to pay it or I’m going to disallow it this form is the notice of that disallowance and under 700.3806 the fiduciary can disallow the creditor claim now of course the benefit of disallowing it or the reason that this is so critical is once the disallowance occurs a clock starts ticking for the creditor the creditor then has 63 days after the mailing or delivery of that notice to do something it may be generally it's the filing of a lawsuit a complaint within the appropriate district circuit federal or probate court to sue for that claim filing a petition is generally not a basis for perfecting a creditor claim in a deceased probate estate but you have to file a civil action and that's what that clock provides for and a failure to do that within that 63-day period absolves the estate of liability so it's a statute of limitations it in essence says you creditor failed to pro to perfect your claim by suing within that time frame and by failing to do so you are forever barred you cannot come after the estate or the personal representative with after that time frame if you fail to file your suit within time so it's really critical that if you're a receipt recipient of this notice of disallowance that you act on your rights very quickly or the tolling may occur and you will forever be borrowed to collect on the debt in addition when use of this form the statutes provide both seven eight uh 700.386 and 700.5429 that the personal representative can first disallow and then back off they can say now we're going to allow it so a lot of power is vested in the personal representative or conservator they can disallow and then say up we'll allow it provide us additional proof that the debt is owed so