There are rules and regulations that cover how creditors are paid from an estate in Texas. You must be familiar with them if you have been named as an executor. It will be up to you to follow all of them so that no issues arise. The goal will be to pay as many creditors as possible. This will ensure that the family is not left with any extra debts.
All estate debts need to be settled
One of the biggest challenges of estate administration is making sure all of the creditors are paid. Texas law has special regulations that outline the order in which all creditors must be paid.
It will be your duty to inform all of the creditors that the deceased has died. This will allow creditors to file any claims that they may have. You have 30 days after a death to publish a notice in the local newspaper. The notice must include the date you were appointed executor, the address to present claims at, and who to address the claim to.
Secured and unsecured creditors must be notified
You are given 60 days to notify all secured creditors who may have a claim. These include creditors who may be owed money on a car loan or home mortgage. Personal loans backed by collateral can also be considered secured.
Unsecured creditors may have claims regarding credit card bills and some types of personal loans. You can send them a notice stating that they have four months to file a claim. If they do not, they may miss their chance to secure repayment.
