Detailed Answer

Whether a late claim will be allowed depends on the legal process involved. Two situations commonly produce a “90‑day” countdown: probate (state estate administration) and federal bankruptcy cases. Each has different rules and remedies.

1) Probate (estate administration) in Vermont

When an estate is opened in Vermont, the executor or personal representative typically gives notice to creditors. That notice usually sets a deadline (often 90 days from the date of notice or publication) for creditors to present claims. If a creditor waits until after that notice period, the claim is generally barred against the estate for payment from estate assets that are distributed after the deadline.

Common results when a creditor files late:

• The personal representative can object and ask the probate court to disallow the late claim.
• If the court disallows the claim, the creditor cannot recover from estate assets distributed after the bar date.
• If estate assets still remain (undistributed assets or assets recovered later), a court may allow payment of allowed claims even if presented late—especially if the late claim was filed before final distribution and notice was inadequate.

Exceptions and reasons a court might allow a late claim:

• The creditor did not receive proper notice. Vermont probate rules protect creditors who lacked actual notice. The probate statute and court look at whether the published or mailed notice met statutory requirements. For general information on Vermont probate statutes, see the Vermont statutes on estates: https://legislature.vermont.gov/statutes/title/14.
• Fraud, concealment, or newly discovered evidence prevented timely filing.
• The estate representative paid the creditor after the bar date or otherwise acknowledged the debt, which may revive the creditor’s right to payment.
• The court finds good cause and exercises equitable discretion to allow the claim.

What executors/personal representatives should do:

1. Check whether the published and mailed notices complied with Vermont probate requirements.
2. Object to clearly late claims, but consider reserving a portion of assets if allowance is uncertain.
3. If the claim seems legitimate and the estate has funds, consider negotiating or seeking court guidance to avoid litigation.

2) Bankruptcy (federal law, applicable in Vermont)

Bankruptcy is governed by federal law. In many consumer and business bankruptcies, the court sets a claims bar date. For non‑governmental creditors in many cases, that deadline is usually about 70 days from the first date set for the meeting of creditors or as set by the court notice. If a creditor files after the official bankruptcy claims bar date, the claim is often disallowed automatically.

Key points in bankruptcy cases:

• Federal Rules of Bankruptcy Procedure govern late proofs of claim and motions to allow them. Courts may permit late claims in narrow circumstances, such as excusable neglect or when allowance would not prejudice other parties. See the Bankruptcy Rules overview: https://www.uscourts.gov/rules-policies/current-rules-practice-procedure/federal-rules-bankruptcy-procedure.
• Chapter 7 and Chapter 11 cases are typically stricter about late claims than Chapter 13; courts consider factors like the reason for delay, the creditor’s knowledge of the case, and prejudice to other parties.
• Even if a claim is disallowed for distribution purposes, the creditor may retain an unsecured claim against the debtor outside the bankruptcy context in limited circumstances (this is technical and fact‑specific).

Practical consequences for creditors and estate representatives

For creditors: filing late risks losing payment from estate or bankruptcy distributions. To attempt to preserve rights, a creditor can:

• File the claim promptly and, at the same time, file a motion to allow the late claim explaining the reason for delay and providing supporting evidence.
• Show lack of actual notice, excusable neglect, new discovery, or other equitable grounds for the court to accept the late claim.

For estate representatives: document that notice requirements were met, object promptly to late claims you believe are barred, and ask the court for instructions before distributing remaining assets.

Where to look for Vermont‑specific rules and filings

Vermont probate practice follows state statutes and local court procedures. For the statutory framework on Vermont estates, consult Title 14 of the Vermont Statutes: https://legislature.vermont.gov/statutes/title/14. For bankruptcy matters in Vermont, see the U.S. Bankruptcy Court for the District of Vermont local rules and notices (court website for the District of Vermont bankruptcy division).

Important: The outcome depends heavily on the facts: how notice was given, when the claim was filed, whether assets remain, and whether the court finds equitable grounds to allow a late claim.

Helpful Hints

• Keep careful records of all notices you receive or send about an estate or bankruptcy case. Dates matter.
• If you are a creditor and you learn late of the death or bankruptcy, act immediately: file the claim and a motion to allow it, with proof of why you did not file earlier.
• If you are administering an estate, do not distribute all assets until you are sure all statutory notice periods have passed and potential claims are resolved, or until the court approves final distribution.
• Ask whether the court issued the statutorily required published and mailed notices; if not, late claims are more likely to be accepted.
• Consider mediation or negotiated resolution where the debt is clear and the estate has funds—this can avoid costly litigation.
• Bankruptcy and probate deadlines differ—identify which process applies before relying on a 90‑day rule.
• Consult a Vermont probate attorney or a bankruptcy attorney quickly; timelines for motions and objections are short.