Creditors Purpose of notice Inform creditors that their debtor is dead so creditors can take steps to get paid 1 Notice to Comptroller of Public Accounts Authority PC 294a EC 308051a2 ID: 183533
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Slide1
Notice toCreditorsSlide2
Purpose of noticeInform creditors that their debtor is dead so creditors can take steps to get paid.Slide3
1. Notice to Comptroller of Public AccountsAuthority
PC § 294(a)
EC § 308.051(a)(2)Slide4
1. Notice to Comptroller of Public AccountsWhen?
Within one month of receiving lettersSlide5
1. Notice to Comptroller of Public AccountsCondition
Only if decedent remitted (or should have remitted) taxes administered by the comptroller.
Advice = give notice regardlessSlide6
1. Notice to Comptroller of Public AccountsMethod
Certified mail
$3.10 plus postage cost
Registered mail
$11.20 (if no $ value on package) plus postage costSlide7
2. General Notice to CreditorsAuthority
PC § 294(a)
EC § 308.051(a)(2)Slide8
2. General Notice to CreditorsWhen?
Within one month of receiving lettersSlide9
2. General Notice to CreditorsMethod
Publication in newspaper in county where letters issued.Slide10
2. General Notice to CreditorsSampleSlide11
3. Secured ClaimantsAuthority
PC § 295
EC § 308.053
Examples
Mortgage on real property
Lien against real property (e.g., unpaid property taxes)
Security interest (Article 9
UCC
)Slide12
3. Secured ClaimantsWhen?
Within 2 months of receiving notice, or
Within a reasonable time after learning of the secured claim, if learn of claim after the two month period.Slide13
3. Secured ClaimantsMethod
Certified mail, return receipt requested
$3.10
$2.55 physical return receipt or $1.25 electronic return receipt
Postage cost
Registered mail, return receipt requested
$11.20 (if no $ value on package)
$2.55 physical return receipt or $1.25 electronic return receipt
Postage costSlide14
4. Unsecured ClaimsAuthority
PC § 294(d)
EC § 308.054
Examples:
Credit cards
Utilities
ServicesSlide15
4. Unsecured ClaimsOptional
The PR is under no duty to “help out” the unsecured creditors other than by publishing notice.Slide16
4. Unsecured Claims“Reward” for giving notice
Unsecured creditor must present claim within four months.
If not, claim is forever barred, even if the
SoL
has not run!!
Term of art = Non-claim statuteSlide17
4. Unsecured Claims
Method
Certified mail, return receipt requested
$
3.10
$2.55 physical return receipt or $1.25 electronic return receipt
Postage
cost
Registered
mail, return receipt requested
$11.20 (if no $ value on package
)
$2.55 physical return receipt or $1.25 electronic return receipt
Postage costSlide18
Penalty for not giving required noticesAuthority
PC § 297
EC § 308.056
PR is personally liable for all damages the creditor suffers due to the failure to give proper notice.