Thursday, December 25, 2003

Laws in Texas for Credit Card Debt for the Deceased

When a person dies in the United States, the state they were a resident of initiates a probate court process. Each state has variances in specific probate laws, and in states that have community property laws, things can get quite complicated. Texas is a community property state and has a very stringent process that must be followed for probate. When in doubt about how to proceed with your estate planning or with handling a death in the family, consult with a professional Texas probate attorney.

Texas Probate Court

    The Texas probate system has a very specific set of procedures that must be followed by the decedent's personal representative and family members. If the laws are not followed, the estate administrator and family heirs can be subjected to legal action. The Texas probate system is designed to collect all assets, pay all debts and disburse any remaining assets to the heirs and beneficiaries.

Personal Representative

    A personal representative, or estate executor, must fulfill all probate requirements set down by law. The representative is responsible for distributing notices to individuals and companies about the decedent's death, posting public newspaper notices, and ensuring that all assets and valid creditors for the estate are recorded properly. The representative must allow specific amounts of time to pass to ensure that all valid creditors have had an opportunity to stake their claim on the estate.

Responsibilities and Liabilities

    The personal administrator of an estate in Texas has numerous responsibilities that must be carried out in order, within the time frames specified by law. Many creditor notices must be conducted a specific way and the administrator must also keep track of all responses from involved parties to ensure no one was overlooked. If the estate administrator fails to send specific types of notices or wait the required time for responses, they can be held personally liable to the creditors.

Debt Orders of Priority

    After the appropriate notices have been distributed and time has passed, the estate administrator must begin paying outstanding debts from the estate assets. Debts must be paid in order, beginning with debts classified as "Class 1," such as funeral expenses and medical bills, and ending with debts classified as "Class 8," which are any that do not fall into one of the previous classification numbers. Federal tax debts take precedence before Class 1 debts, and credit card debt would fall into Class 8.

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