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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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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? • Within one month of receiving letters
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
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
2. General Notice to Creditors • Authority • PC § 294(a) • EC § 308.051(a)(2)
2. General Notice to Creditors • When? • Within one month of receiving letters
2. General Notice to Creditors • Method • Publication in newspaper in county where letters issued.
2. General Notice to Creditors • Sample
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)
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.
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
4. Unsecured Claims • Authority • PC § 294(d) • EC § 308.054 • Examples: • Credit cards • Utilities • Services
4. Unsecured Claims • Optional • The PR is under no duty to “help out” the unsecured creditors other than by publishing notice.
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
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
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.