how a notice to creditors works
in the united states when a person dies there may be an informal probate process of the deceased s estate the phrase avoiding probate refers to the strategy of arranging for the non probate transfer of assets via trusts joint accounts or by other means such as life insurance some states have an asset threshold allowing small estates to avoid probate but if an interested party objects assets exist that require probate or other issues are evident a probate case will be opened depending on state laws once probate is opened creditors have a limited amount of time from the date they were notified of the testator s death to present any claims against the estate for money owed to them claims that are rejected by the executor can be filed in the court where a probate judge will have the final say on whether or not the claim must be paid even though newspapers have given way to digital and online media they are still a commonly used medium with which to provide notice to outstanding creditors notice in bankruptcy proceedingsa notice to creditors is also filed for bankruptcy proceedings in the event of personal bankruptcy the notice is filed before the first meeting of creditors known as a 341 meeting individuals filing chapter 7 or chapter 13 bankruptcy must attend this meeting with the bankruptcy trustee and creditors may also attend and ask questions 1