I have a probate question
I'm going to put an example with some made-up figures because honestly, I haven't gotten to the bottom of the real figures I'm dealing with. But I just want to verify if I understand the concept.
Lets say a guy has paid-off 3 houses. But he also has a huge amount of unsecured which pretty much equals the value of the houses. Then guy dies and court freezes everything. Which one of the following applies:
1) Houses go to heirs and unsecured debt goes to hell.
2) Houses get sold to pay the unsecured debt.
I believe is #2 , debt gets paid, then heirs get the rest if there's anything left. Am I correct?
Generally #2 is correct but I am not up on Florida law.
In Ohio ORC 2117.06 sets out what an unsecured creditor has to do and the time in which they have to present
any claims. It is 6 months and then they are barred. (some exceptions like Medicaid Recovery).
If the estate is substantial you may want at least some advice from a probate attorney.
Not just any attorney but a probate attorney.
You don't go to an eye doctor for a colonoscopy!
+1 on the local probate attorney. I think the administrator/executor of the estate would have to notify the known creditors (shouldnt matter if they are secured or unsecured). But yes, after a time period (6-12 months? depends on the local law) the claims are generally barred.
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