TL;DR: Executors in Alabama have the right to challenge creditor claims filed against an estate. In one day, I reviewed four creditor claims across two separate probate estates and saved the families a combined $35,631. The creditors lacked the documentation to substantiate what they said they were owed. If you are an executor, demand proof before writing checks.
What Are Creditor Claims in Alabama Probate?
When someone dies, their debts do not disappear. Creditors — banks, medical providers, credit card companies, and others — have the right to file claims against the estate for money they say the deceased owed them.
In Alabama, the process works like this: the executor publishes a notice to creditors in the local newspaper. Creditors then have six months from the date of publication to file their claims with the probate court. The executor reviews each claim and decides how to handle it.
Most executors assume that if a creditor filed a claim, it must be valid. That assumption costs families money.
Why Do Most Executors Overpay Creditor Claims?
Three reasons:
They do not know they have the right to challenge claims. Alabama Code Section 43-2-350 gives executors and administrators the authority to contest any creditor claim. Most executors serving for the first time have never heard of this statute.
They feel pressure to settle the estate quickly. Families want the process done. Paying every claim feels like the fastest path forward. But paying unsubstantiated claims means the beneficiaries receive less than they should.
Their attorney does not review the claims closely enough. Some attorneys treat creditor claim review as a formality. They glance at the claims, confirm the amounts look reasonable, and advise the executor to pay. That approach leaves money on the table.
How I Saved Two Families $35,631 in One Day
Both estates were in Madison County, Alabama. The executors brought me four creditor claims filed against the two estates.
I reviewed each claim and demanded documentation to substantiate the amounts. The creditors could not provide it. Four claims totaling $35,631 lacked the records needed to prove the debts were valid, accurate, and owed by the estate.
I filed objections to each claim. The result: $35,631 stays with the families instead of going to creditors who could not prove what they were owed.
How Do You Challenge a Creditor Claim in Alabama?
The process is straightforward but requires attention to detail:
Step 1: Review every claim filed. Do not assume any claim is automatically valid. Look at the amount, the documentation attached, and whether the claim was filed within the six-month window.
Step 2: Demand substantiation. If a creditor files a claim without supporting records — account statements, contracts, invoices, or billing records — that is a deficiency. The creditor bears the burden of proving the debt.
Step 3: File an objection. Under Alabama Code Section 43-2-350, the executor files a formal objection with the probate court stating the grounds for contesting the claim. Common grounds include lack of documentation, expiration of the statute of limitations, and incorrect or inflated amounts.
Step 4: Let the creditor respond. Once an objection is filed, the creditor must substantiate the claim or it is denied. If they produce adequate documentation, the executor and creditor negotiate or the court decides. If they do not, the claim fails.
What Is the Deadline for Creditor Claims in Alabama?
Alabama law requires creditors to file claims within six months of the published notice to creditors. This deadline is strict. Claims filed after the six-month window are time-barred, and the executor is not required to pay them regardless of whether the underlying debt was legitimate.
This is another area where executors leave money on the table. If a creditor misses the deadline, the claim is done. No exceptions.
What Documentation Do Creditors Need to Prove a Claim?
A creditor saying “the estate owes us $12,000” is not enough. They need to provide:
- Records showing the debt existed before the date of death
- Account statements or contracts proving the amount owed
- Evidence that the deceased — not someone else — was the debtor
- Proof that the claim was filed within the six-month window
If any of these elements are missing, the executor has grounds to object. In the two estates I handled, all four claims failed because the creditors lacked documentation to substantiate their numbers.
What Happens If an Executor Pays an Invalid Claim?
The money is gone. Once an executor writes a check to a creditor, that payment comes out of the estate. The beneficiaries — the people the deceased wanted to receive the assets — get less.
Executors have a fiduciary duty to the beneficiaries. That duty includes protecting the estate from claims that are not properly supported. Paying every claim without scrutiny is not just a missed opportunity. It is a failure of that duty.
Three Things Every Alabama Executor Should Do When Creditor Claims Arrive
1. Demand documentation from every creditor. Do not accept a claim at face value. Ask for the records that prove the debt existed, the amount is correct, and the claim is timely filed.
2. Check the deadline. Verify that each claim was filed within six months of the published notice. If it was not, the claim is barred.
3. Have a probate attorney review the claims before paying. One day of review saved two families $35,631. The cost of the review is almost always less than the amount saved by catching deficient claims.
Schedule a Strategy Session
If you are serving as executor of an estate in Alabama and creditor claims are coming in, do not pay them without a review. Schedule a strategy session with Key Law LLC to discuss your situation.
Key Law LLC serves families across Alabama with estate planning and probate matters. Our office is in Huntsville, and we handle cases statewide.