California has specific laws and rules about the process required to deal with creditors and debts in California probate. It is the estate’s executor or appointed representative’s responsibility to notify all creditors of the probate proceedings. This notification allows creditors to make and file formal claims against the probate estate. It is important to note that creditors and interested parties usually have a limited amount of time to file a claim.

What our Clients Say...
“I had a great experience with my California probate case using A People’s Choice! The people that assisted me were so helpful.  I certainly could not have done this probate by myself.  The best part was that I was able to save over $10,000 in lawyer fees!  All my emails were always returned so quickly. Needless to say, I am a very satisfied customer.  I would highly recommend A People’s Choice to all my friends and family!”
Joi C
My father-in-law passed away without a will so his estate went into probate and we were intimidated by the paperwork and court process ahead of us. A lawyer was recommended to us, but after sending him everything he asked for he did nothing with it for several weeks and was slow to get back to us. His fees were set to be thousands upon thousands and we were frustrated that progress wasn’t happening. We stumbled upon A People’s Choice and we took a leap, switched, and we’re so glad we did. They were quick to respond and moved as quickly as we did. They saved us SO MUCH money and answered all our questions. We worked together to get everything done smoothly, and we felt like APC treated us with respect and patience. We are so grateful we found them and got everything done with confidence. Thank you APC!”
Suzie H.
“VERY HIGHLY RECOMMENDED!! My experience with A People’s Choice was EXCELLENT!! I retained their services to help me with the probate process after unexpectedly losing my Mom. I received quotes from 2 lawyers locally and they were 3 to 4 times the price. All communications from the staff were punctual and very thoroughly explained. They were there to support me the entire time. Any and all questions I had were explained as needed with very quick responses. There were NO HIDDEN FEES or charges. They have a very easy to use portal to access all of the documents. I can’t say enough good things about the work that they did for me!!! Thank you to all the staff. You are an amazing team and I appreciate everything you did to help my family and I when we needed it most!!”
Hisham A.
“A People’s Choice walked me through the entire probate process. This company is very professional and helpful and made a scary probate pretty much stress free. I would send an email with a question I had thought of over the weekend with the expectation I would get an answer on Monday but lo and behold, I often got an answer within minutes! Thank you to the staff for your guidance and patience to talk me through such a difficult time. You made the process very smooth! Probably saved us about $10,000! We are very pleased and will be referring our friends/family to A People’s Choice!”
L. Garrett.
“A People’s Choice is an incredible organization and extremely well-run business. My probate was taking place in California, but I live in Washington state. Probate is extremely expensive, but A People’s Choice is able to lower this expense by a huge amount and provide outstanding service. Probate is very stressful – it has a legal language all its own. A People’s Choice provides all the information you need to understand Probate and lower your stress. They are truly worth much more than their reasonable fees. I am a legal “dummy”. I was treated with respect and given answers to questions about the process. Their staff is incredibly knowledgeable and helpful. They get back to you quickly and are very efficient. I would recommend A People’s Choice to anyone that is dealing with Probate. I am so thankful that I found this excellent organization!!
Kathy H.
“I must say that A People’s Choice is a very responsible and effective company. The staff there is very nice and replied to all my questions by email quickly. With their help, I accomplished the probate in 8 months successfully and saved at least $10,000.00 in attorney fees, so I strongly recommend everybody to contract with A People’s Choice and let them help you with your legal documents. You will be very satisfied with their work as I did!!!!”
C. Chiu
“Can’t say enough about the level of service and professionalism I received working with A People’s Choice. Emails were always responded to quickly and thoughtfully. They really care about the process and helping you get the best result with no up-selling. Of course, they can’t provide legal advice, but I was referred to an attorney when I needed some questions answered who was very reasonable and easy to get a hold of as well. The process played out according to plan, and I ended up saving a lot of money by going with A People’s Choice over an attorney.”
M. Rice
“When my mother-in-law passed away last year, we didn’t know what to do. We contacted A People’s Choice and from day one they were very helpful. They held our hand every step of the way, and if I had a question any time of the day or night someone got back to me within a few hours. I highly recommend A People’s Choice if you don’t know what to do and don’t want to pay the high price of a lawyer, especially if you don’t have much money.”
Mikki C
“Thanks to A People’s Choice, I was able to get through a probate matter very smoothly. I had not one issue with the Courts. They guided me through the whole probate until the very end. I live up north, but that didn’t matter, A People’s Choice did an excellent job keeping me informed with everything that I needed to do. I saved THOUSANDS of dollars by going with A People’s Choice. You can’t go wrong, no matter what your needs are. I saved a lot of money by not having to pay out a percentage to an attorney. Many thanks to the staff at A People’s Choice for the great help they give to everyone in their times of need like I was! Thank You.”
R. Leonard
“Probate itself is a frustrating and expensive process. A People’s Choice was professional and courteous throughout a long probate process. Everyone I came in contact with at A People’s Choice was exceptionally helpful, patient, and professional. For those entering into the probate process, I must warn you that it is difficult to understand. The staff at A People’s Choice makes it as tolerable you could wish for.  The people who work there were kind, efficient, and understanding.  If you email your questions, they’ll get back to you and won’t make you feel like you are ignorant if you are unclear about any part of the process.”
Marcel B
“We had a complicated situation trying to change the beneficiaries to an old family property. There were 7 owners, most of whom were born in the 1800s. A People’s Choice persevered along with us and got it done. Lawyers we had contacted wanted $1000’s more than APC charged us and were unsure as to how to even proceed. We are extremely happy with what they achieved for us.”
Lori A.
“After not having my call returned from a probate lawyer, I looked into doing a Spousal Property Petition myself.  A People’s Choice assisted me through the whole probate process and everything went smoothly.  When I appeared in court, I didn’t have to say a word. The judge just said, “granted.”  Using A People’s Choice I saved thousands of dollars, and I’m so glad that probate attorney didn’t return my call.  I highly recommend A People’s Choice.”
Donna G.
“I cannot say enough about the time and money this company saved me. With their help I finished Probate in Tulare Co on my brother estate in little over 12 months. I am a letter carrier with no legal training, yet , I completed the entire process mainly because A People’s Choice walked me thru each step. They filed most papers electronically which resulted in me needing only three court appearances (and saved me from many trips to Visalia.) Keep in mind, all probates are different but if you have limited resources I recommend this company. The Probate Judge complimented me on the good work I received from A People’s Choice, saying this was not always to case with other legal help offices.”
Jack M.
“Thank you so much for all your help through this California probate process.  By using your company instead of a California probate lawyer, we were able to cut our expenses dramatically.  Thank you for answering my many questions and for giving me a heads up on documents that could be prepared in advance in order to save time and money.  There was always someone available to help! Thank you again.”
Craig K.
“I needed help understanding and filling out legal documents, but I didn’t have enough money to pay for an attorney. After searching the internet, I found A People’s Choice. I was relieved to know that I would get the exact service that I needed at an affordable price. The staff was very professional and helpful with my legal documents. They worked around my schedule and responded to my emails in a timely manner. They took care of all the paperwork and filing and kept me posted. I would highly recommend A People’s Choice for your legal documents as you will get outstanding service at an affordable price.
Sharon B.
“A People’s Choice did a great job on the probate I had to go through for my mom. I really didn’t have to think about most of it. I just signed or filled out the papers they sent through the Portal. I would definitely use A People’s Choice again if the need arises! All their people were professional and friendly. Overall it was a great experience for me at a very difficult time!
L. Wade.
“A People’s Choice helped us throughout our entire year-long probate making the process very easy and manageable while at the same time saving us thousands of dollars in lawyer’s fees. Not only were they extremely friendly and fast to respond to our questions but they made the process simple enough that we hardly ever had to contact the courthouse directly and we even had a hearing done without an appearance. Would highly recommend A People’s Choice to anyone!”
A. Vuckovich
“A People Choice provided excellent support with the appropriate legal documents and filing process in a spousal property petition after my husband passed. Lawyers wanted to charge me a fortune. However, once I spoke with someone at A People’s Choice, they took on my case and guided me through every step. A People’s Choice has years of experience, which gave me a sense of trust and confidence. I always got immediate feedback from every email request. If you need probate help, I would highly recommend A People’s Choice.”
Sylvia A
“I used A People’s Choice for help with a probate matter. My grandfather died Christmas of 2016. He had a living trust, but no one was able to find it. We went to A People’s Choice, and we were able to do a probate affidavit to get what was left of my grandfather’s estate. Took two days for the documents to be prepared and the bank accepted them without any questions. Sandy was the one who assisted us, and we really appreciate the help that was provided. A+ service.”
David R.
“I had hoped to have my probate process taken care of by myself to save money. After the fourth attempt to file at the Clerk’s office, I left in tears and faced the reality of hiring an attorney. I look on the internet to find one and came across A People’s Choice. They offered a price that was way below what attorneys charge! They guided me through every step of the process and wrote up all the paperwork so that all I had to do was sign. It was really an amazing experience. They are a pleasure to work with.”
D. Chase.
“I am writing to give A People’s Choice my utmost recommendation. Living in New England, I found them on the web. After speaking with a staff member on the phone I had the confidence to give them my business. A People’s Choice handled my probate case with great professionalism and knowledge. My case turned out to be more complicated than originally believed, and the staff walked me through each step. They always responded promptly to my email questions. In the end, their service was exactly what I hoped for; they saved me thousands of dollars and allowed me to do it from across the country. They were truly a pleasure to work with.”
K. Levenson
“A People’s Choice worked on my probate case for over 1 year. Their knowledge, dedication, and commitment to clients are exceptional, preparing the required legal documents, and all the court filings. They used the e-filing system which really expedited the process. They always answered my emails in a very timely manner and were professional. The probate process is long and sometimes seems overwhelming. It’s also very expensive, A People’s Choice saved me thousands of dollars as compared to an attorney. I would highly recommend A People’s Choice for your probate needs. It’s cost effective, and they handle the entire process from beginning to end!”
“The entire team at A People’s Choice were very supportive in our probate case. Losing a parent is extremely difficult, and so is the subsequent paperwork.  A People’s Choice made it easier and charged a very fair price, saving us thousands in attorney fees. What I liked a lot was the transparency and digital tools used. Documents were managed via email and on a platform. Payment for court items was easy. I appreciate that they use modern methods in an old school industry and most things could be done remotely. All in all, I can definitely recommend A People’s Choice if your case is straightforward. Thank you to Sandy and team for helpful us get here! What a huge relief! I’m glad we had your support along the way. Made it way less stressful and way more manageable.”
Jenn C.
“I used A People’s Choice to prepare and file documents to probate my sister’s estate.  I began the probate process in pro per and hired them after discovering the difficulty in processing the probate by myself.  Very knowledgeable with good technology to keep me informed.  Their fees were significantly less than what I would have had to pay for an attorney, yet their services were excellent. I can’s see where an attorney would have been any better (or as good). Highly recommend this service.”
Ron C.
“When my father passed away without a will, we needed help handling the transfer of his assets. Since there weren’t significant assets, I didn’t want to spend too much on the legal paperwork. A People’s Choice offered just the right service we needed. In particular, the staff was very responsive to our document filing needs, helping to turn around corrections almost immediately. They helped to ease a tough situation.”
Michael C.
“I would have never thought I could complete a full probate online without an attorney. A Peoples Choice guided me through the process every step of the way. They are a very professional and knowledgeable company far exceeding my expectations. My advice to anyone seeking this kind of service is as long as you are committed to doing your part, with A Peoples Choice guidance you will complete the task. A Peoples Choice Is a 5-star company that I was lucky enough to stumble upon in my searching process.”
Rhonda G.

We help Deal With Creditors and Debts in California Probate!

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At A People’s Choice, we can help you complete your probate case without having to hire a lawyer. As a legal document assistant, we have filed thousands of probate cases and helped people save hundreds and thousands of dollars in attorneys fees. There are several different ways a personal representative can deal with creditors and debts in California probate and provide the required notice. The first, and most important way is through the required newspaper publication. Our office assists in this critical step.  We can also help in preparing other necessary documents you may need to provide estate creditors and interested parties with official notice about the pending probate. Lastly, we can help you respond to disputed creditor claims. Read on to learn more about the steps required to deal with creditors and debts in California probate.

Estate Creditor Notice

As mentioned above, the estate’s executor or personal representative must notify the estate creditors. In preparing a last will, the deceased may have left paperwork identifying creditors and the amount of debt owed. During the probate process, the estate’s representative must take precautionary steps to pay all creditors the proper amount owed. In this regard, the court can hold the personal representative liable if they pay a party not permitted under probate law.

Simple Steps to Deal With Creditors and Debts in California Probate

Here are the steps required to deal with creditors and debts in California probate.

  1. Complete forms Notice of Administration to Creditors Form DE-157 and Creditor’s Claim form DE 172 to start the noticing process.
  2. Serve all known creditors Notice. Keep in mind, some state agencies need separate and particular notice. For example, the personal representative should notify the California Department of Health Care Services if the decedent was on Medi-Cal. The Director of the California Victim Compensation and Government Claims Board must receive notice if one of the decedent’s heirs or beneficiaries is or was confined in a state prison or any county or city jail. Lastly, the representative will need to send notice to the California Franchise Tax Board within 90 days of the Court Clerk issuing formal Letters.
  3. Monitor the court’s website to see if a creditor files a claim in the probate case. If a creditor files a formal claim, the personal representative can take one of three actions: (a) accept the claim, (b) reject the claim or (c) ignore the claim.  When accepting the claim, the personal representative agrees to pay the amount due. If they reject the claim, the representative will need to file formal notice that they partially or fully dispute the debt. Keep in mind, if a creditor is not aware of the administration of an estate, Probate Code Section 9103 allows them to ask the court permission to file a late claim.

If the personal representative ignores the claim or formally disputes the claim, it is up to the creditor to file a formal lawsuit within 90 days of the personal representative rejecting or ignoring the claim.

Paying Valid Claims

  1. Once the personal representative receives all claims, they need to determine if there is enough money to pay the debts. Some debts have priority such as federal and estate taxes; then probate costs; then funeral costs and lastly creditors. It should be noted if the personal representative has enough money in the estate and there are sufficient funds set aside to pay the administrative expenses, Probate Code Section 11421 requires the personal representative to pay the decedent’s funeral expenses, costs of decedent’s last illness, family allowance, and wage claims. It is usually best to wait until the credit claim period has expired before paying other types of debts.
  2. Pay all valid claims. This would include credit card debts, utility bills, and other items.

What Happens If There Is Not Enough Money in the Estate?

If the estate does not have enough money, the personal representative may have to prorate the amount left between similar creditors. Remember, some creditors have priority, so this apportionment only occurs within creditor “groups.” Here is an example. An estate has $60,000 in debt. $20,000 is owed in taxes, $10,000 for funeral expenses and $30,000 in general creditors. The estate only has $35,000 available to pay debts. The $20,000 tax debt is paid first, then the $10,000 funeral expenses, leaving only $5,000 to divide between the general creditors. In some insolvent estates, the general creditors may receive nothing.

As mentioned above, if you are not sure about the decedent’s debts, wait until the end of the claim filing period before paying any claims. Then you will know the exact total of the creditor’s claims filed. Remember, the claim filing period ends either four months after the court clerk issues Letters OR sixty days after mailing the Notice of Administration, whichever occurs last.

Unfortunately, if an estate is insolvent, the heirs and beneficiaries will not receive anything. If the decedent’s will gifts them specific property or money, these gifts will expire. A beneficiary or heir can only receive probate assets if there is money left over in the estate after the personal representative pays all valid debts.

A General Overview

As discussed above, when the representative rejects a creditor’s claim, notice must be provided and served on the creditor. The creditor can file a claim against the estate within 90 days of the rejection. The court will conduct a subsequent hearing in front of a judge to assess, validate and/or deny all creditors claims.

There are other claims in probate that decedent’s creditors or relatives may assert. These include funeral expenses, spouse award, dependent child award, monies owed to the decedent’s employees. Interested beneficiaries may also file claims about the distribution of property.

The claims process usually lasts between 60 – 90 days. At A People’s Choice, if necessary, we can help you deal with creditors and debts in your California probate. As mentioned above, the personal representative must provide notice to creditors by publication in a local newspaper. The personal representative may need to complete other documents if they later discover other creditors after the first notice.

Using a Legal Document Assistant for Help

This is a general overview of how to deal with creditors and debts in California probate. More importantly, you should not consider this article as legal advice for a particular situation. Every probate case is different, and you should talk to an attorney if you need legal help about specific issues.

As far as the paperwork goes, however, we highly recommend you consider working with an experienced legal document preparer. As such, A People’s Choice is a great option for your probate document preparation. A Peoples Choice has been in business since 1980, helping people file California probate and other types of legal documents. As such, our staff understands the detail and time-sensitive nature of these cases. As a legal document assistant, we can help you deal with creditors and debts in California probate. Call us today at 800-747-2780 or contact us through our website.

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A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney!

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