Tell us how various types of debts are handled in the probate process.

Denton, TX Family Law Attorney David S. Bouschor, II talks about the various types of debts in the probate process.

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Phone: (940) 323-1300


Well, first of all, if you have a estate that has a lot of debt, a probate is a method by which you can kind of do a mini-bankruptcy. There is a claims process that notice is given, claims have to be filed, and at the end of that process, if it’s been handled correctly, you know whether that claim is going to be paid and in what order they’re going to be paid. And at the end of the day, if you have an estate that has more claims than debt, often it is beneficial to the estate to wrap up all of those claims and get them taken care of than just ignoring them and see if they come back and bite you.

But in Texas we have a claim process where there are claims that are divided up into one through eight and you pay them in that order. And there’s also a process whereby you put the debtor in a position that they have to prove their claim, and if they can’t prove their claim, the claim goes away. So the claim process is actually quite complicated, and it’s different if you have a dependent or an independent administration, and those are the decisions that need to be made between you and your attorney with the specific facts of the estate.