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Notice to Creditors

Notice to Creditors. Purpose of notice. Inform creditors that their debtor is dead so creditors can take steps to get paid. 1. Notice to Comptroller of Public Accounts. Authority PC § 294(a) EC § 308.051(a)(2). 1. Notice to Comptroller of Public Accounts. When?

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Notice to Creditors

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  1. Notice toCreditors

  2. Purpose of notice • Inform creditors that their debtor is dead so creditors can take steps to get paid.

  3. 1. Notice to Comptroller of Public Accounts • Authority • PC § 294(a) • EC § 308.051(a)(2)

  4. 1. Notice to Comptroller of Public Accounts • When? • Within one month of receiving letters

  5. 1. Notice to Comptroller of Public Accounts • Condition • Only if decedent remitted (or should have remitted) taxes administered by the comptroller. • Advice = give notice regardless

  6. 1. Notice to Comptroller of Public Accounts • Method • Certified mail • $3.10 plus postage cost • Registered mail • $11.20 (if no $ value on package) plus postage cost

  7. 2. General Notice to Creditors • Authority • PC § 294(a) • EC § 308.051(a)(2)

  8. 2. General Notice to Creditors • When? • Within one month of receiving letters

  9. 2. General Notice to Creditors • Method • Publication in newspaper in county where letters issued.

  10. 2. General Notice to Creditors • Sample

  11. 3. Secured Claimants • Authority • PC § 295 • EC § 308.053 • Examples • Mortgage on real property • Lien against real property (e.g., unpaid property taxes) • Security interest (Article 9 UCC)

  12. 3. Secured Claimants • When? • Within 2 months of receiving notice, or • Within a reasonable time after learning of the secured claim, if learn of claim after the two month period.

  13. 3. Secured Claimants • Method • Certified mail, return receipt requested • $3.10 • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost • Registered mail, return receipt requested • $11.20 (if no $ value on package) • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost

  14. 4. Unsecured Claims • Authority • PC § 294(d) • EC § 308.054 • Examples: • Credit cards • Utilities • Services

  15. 4. Unsecured Claims • Optional • The PR is under no duty to “help out” the unsecured creditors other than by publishing notice.

  16. 4. Unsecured Claims • “Reward” for giving notice • Unsecured creditor must present claim within four months. • If not, claim is forever barred, even if the SoL has not run!! • Term of art = Non-claim statute

  17. 4. Unsecured Claims • Method • Certified mail, return receipt requested • $3.10 • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost • Registered mail, return receipt requested • $11.20 (if no $ value on package) • $2.55 physical return receipt or $1.25 electronic return receipt • Postage cost

  18. Penalty for not giving required notices • Authority • PC § 297 • EC § 308.056 • PR is personally liable for all damages the creditor suffers due to the failure to give proper notice.

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