Detailed answer — what to do, step by step

1. Understand who you are dealing with and the estate role.

   Confirm whether you are the personal representative (executor or administrator) authorized to handle estate debts. Only the personal representative or someone authorized by the probate court should pay estate creditors. If you are an heir or beneficiary, coordinate with the personal representative before taking action.

2. Get a written, itemized payoff quote.

   Ask the creditor for a formal written payoff statement that shows: original principal, itemized past charges, interest computation dates and rate, late fees, collection charges, any finance charges, dates of last payments, and payoff effective date. A proper payoff should be signed by an authorized creditor representative.

3. Request proof of the debt and chain of title (if applicable).

   Ask for documentation proving the estate’s obligation: the original contract or loan agreement, promissory note, billing statements, payment history, and any assignment-of-debt or transfer if a third-party debt buyer now owns the account. For secured debts, ask for the recorded security instrument (mortgage, deed of trust) and payoff ledger showing application of payments.

4. Verify math and interest accrual.

   Check that interest is being calculated using the contract rate and proper compounding period. Confirm the payoff date used by the creditor (many payoffs expire after a short time). Ask for a day-by-day ledger if calculations don’t match your own totals.

5. Compare the quote to estate records and prior payments.

   Cross-check the creditor’s ledger against estate bank statements, cancelled checks, and payment records. If the estate already paid part of the balance, make sure those payments appear on the creditor’s ledger.

6. Check for duplicate claims or previously released obligations.

   Confirm the creditor has not already been paid or settled; also check whether a debt was discharged in bankruptcy prior to the decedent’s death (that can affect enforceability).

7. Look for incorrect or excessive fees and state-law limits.

   Mississippi law and the original contract may limit certain fees or how interest is applied. If fees look excessive or unauthorized, ask the creditor for the legal basis and cite the loan agreement provisions.

8. Use formal discovery if needed before court action.

   If you are in probate court or anticipate a claim dispute, you can request documents through the court process (motions, subpoenas, or discovery). Keep records of all written requests and responses.

9. Preserve and segregate disputed funds.

   If you must move forward but dispute part of a claim, consider placing the contested sum into the estate account or asking the court to allow payment of undisputed portions while holding the disputed portion in escrow pending resolution. The probate court can order escrow or interpleader when claims conflict.

10. File a formal objection or petition with the probate court.

    If a creditor refuses to substantiate the payoff or persists in an inaccurate amount, the personal representative can file an objection, petition to allow or disallow the claim, or ask the probate court for a hearing to resolve the dispute. The court can require the creditor to prove the claim and may reduce or disallow charges that are unsupported.

11. Consider alternative dispute resolution or settlement.

    Mediation or negotiation can resolve many payoff disputes faster and less expensively than a contested court hearing. Document any settlement in writing and, if required, obtain the court’s approval.

12. Know when to get legal help.

    If the creditor will not provide documentation, the math is complex, there are competing claims, or the amount is significant relative to the estate, consult a Mississippi probate or consumer-debt attorney to advise on filing a court contest or negotiating a resolution. An attorney can also help with motions to compel discovery or other court remedies.

For general information on Mississippi probate procedures and filing matters in probate court, visit the Mississippi Judiciary website: https://courts.ms.gov/. For statewide legislative resources, see: https://www.legislature.ms.gov/.

When you can ask the probate court to act

If negotiations do not resolve the dispute, the probate court can adjudicate contested claims, order discovery, and require proof. Typical court actions include an objection to a creditor’s claim, a petition for a determination of claims, or a request to escrow disputed funds. The probate court has authority to disallow improper creditor charges and to settle competing claims to estate assets.

Helpful hints

• Always get payoff quotes and disputes in writing. Oral assurances are hard to enforce.
• Record dates on payoff quotes — many expire within days. Note the effective payoff date used to compute interest.
• Keep a detailed paper trail: emails, letters, phone logs (who you spoke with, when, and what was said).
• Do not pay a disputed claim out of personal funds. Use estate funds only and follow probate rules for distributions.
• If a creditor is a debt buyer, demand proof of assignment and chain of title before paying.
• For secured debts (mortgages, vehicle liens), verify the county recording and payoff figure against the recorded lien instrument.
• If the estate is small and the claim is small, consider whether cost-effective settlement or negotiation is preferable to litigation.
• Ask the creditor to provide a payoff that includes a promise to accept that amount as full satisfaction once paid — then put the promise in writing and, if possible, get court approval for the settlement.
• If you suspect fraud, identity theft, or forged documents, immediately notify the probate court and consider law enforcement and civil remedies.