Detailed Answer
When someone dies in Oregon, the personal representative (executor or administrator) must notify all creditors—including medical debt collectors—so the estate can pay valid claims and then distribute assets. Oregon law sets distinct procedures for known and unknown creditors. Follow these steps:
1. Appointment of Personal Representative
After filing a petition and getting Letters Testamentary or Letters of Administration from the probate court, the personal representative has legal authority to act. The date the court issues letters triggers deadlines for creditor notices and claim filing.
2. Notice to Known Creditors
- Within one month after Letters are issued, mail each known or reasonably ascertainable creditor a copy of the Notice to Creditors by first-class mail. (See ORS 115.065(1)).
- This mailing starts the four-month window during which that creditor must file a claim with the court. (See ORS 115.085(1)).
3. Notice to Unknown Creditors
- Publish a Notice to Creditors once a week for four consecutive weeks in a newspaper of general circulation in the county where probate is pending. (See ORS 115.055(1)).
- The date of the last publication establishes the deadline for unknown creditors. They have four months from that date to file claims. (ORS 115.085).
4. Form and Content of the Notice
The Notice to Creditors must include:
- The estate name and case number.
- The personal representative’s name and address.
- The court’s name and address where claims must be filed.
- Deadlines for known and unknown creditors to file claims.
- A statement that claims not filed on time may be barred.
5. Handling Medical Debt Collectors
Medical providers and debt collectors qualify as creditors. They receive notice like any other creditor. If they file a claim:
- Review the claim details. Verify dates of service, balances, and any insurance payments.
- Object in writing if the claim is invalid or inflated, detailing your grounds under ORS 115.095.
- Allow the court to resolve any disputes.
6. Consequences of Missed Deadlines
If a creditor fails to file within the applicable four-month period, the claim is barred forever except for certain statutorily recognized exceptions. The personal representative can then close the estate and distribute assets free of that claim.
7. Court Supervision and Final Distribution
After claims resolution, the personal representative submits a final account. The court must approve payment of allowed claims before assets go to heirs or beneficiaries.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Start gathering a list of potential creditors early—review mail, bills, and medical records.
- Use the Oregon Secretary of State’s website to find approved local newspapers for publishing notices.
- Keep proof of mailing and publication in the probate file.
- Track deadlines on a calendar; missing a deadline can permanently bar valid claims.
- If a medical debt collector contacts you, request proof of the debt in writing before agreeing to anything.