What happens if you're stuck holding the bill?

When a debtor passes away, creditors might feel that their chance of recovering debts has also vanished. But California probate law has built-in options for creditors to collect from a deceased debtor's estate—even if no one from the family steps up to manage the process. In Orange County, as in all counties in California, creditors have a couple of routes to take, starting with the County public administrator.

Option One: Meet the County Public Administrator—Your Potential Ally

The first stop for a creditor looking to collect from a decedent's estate is the Orange County public administrator's office. Public administrators exist in every California county, including Orange County, to handle the estates of individuals who pass away without an appointed executor or without next of kin willing to take on the burden.

What Does the Public Administrator Do First?

Upon a creditor's referral, the public administrator will typically conduct a preliminary check to determine if it's worth their time to open probate on this estate. They'll assess whether the decedent left any assets in California—like real estate, bank accounts, or other valuable property. If the cupboard is bare, the administrator may decide to pass on the case, as an asset-less estate often can't satisfy creditors.

Priority Check: Any Family Members?

Next, the public administrator checks for any eligible next of kin with the legal authority to act. Under California probate law, family members generally have priority to serve as estate administrators, and the public administrator wants to avoid taking on cases if a family member is both willing and able to serve.

If the family is MIA—or just not interested—the public administrator may step up. If so, they'll seek an appointment, open probate, and creditors can then submit a claim through the court and directly notify the public administrator.

Option Two: DIY Probate for Creditors

Let's say the public administrator decides not to take the case or the creditor wants to take a more hands-on approach. The creditor has another legal path: applying to be the administrator of the estate directly. According to California Probate Code Section 8461, creditors finished second to last as far as priority, but they made the list!  This means a creditor can step in if no one else higher up on the priority list (like family members or nominated executors) is willing or eligible.

How This Works in Practice

Filing for appointment as the estate administrator can be a bit of a process. The creditor needs to file a petition with the Orange County Superior Court, providing necessary details like the decedent's information, assets, and creditor's claims. Once appointed, the creditor effectively steps into the role of administrator, managing the estate's assets and liabilities and distributing any remaining assets according to California probate law.

Why Work with Us?

Navigating probate as a creditor can be a complex, sometimes frustrating process. But here's where our expertise comes in: we're familiar with the nuances of Orange County's probate court and public administrator's office and can guide you smoothly through the process. Whether you're starting with the public administrator or seeking direct appointment, our team is here to help you take the right steps.

If you're a creditor with questions on estate administration in Orange County or elsewhere in California, reach out today to see how we can support you!

Disclaimer: The above information is intended for information purposes alone and is not intended as legal advice. Please consult with counsel before taking any steps in reliance on any of the information contained herein.