Detailed Answer
Under Utah probate law, an executor must review all creditor claims submitted against a decedent’s estate. Creditors file claims under Utah Code § 75-3-801. After the filing deadline—usually three months from notice—expires, the executor may object under Utah Code § 75-3-803.
To challenge a claim on predatory lending grounds, follow these steps:
- Gather Loan Documents and Identify Violations. Review the loan agreement, settlement statement and promissory note. Compare fees and interest rates to Utah’s usury limit under Utah Code § 15-1-4. Check for hidden fees or unfair terms that violate the Predatory Mortgage Lending Practices Act (Title 7, Chapter 27).
- Serve a Written Objection. File a formal objection with the probate court, citing Utah Code § 75-3-803. State that the debt arises from unlawful predatory lending. Include supporting facts: excessive APR, undisclosed penalties or inflated charges.
- Notify the Creditor and Interested Parties. Deliver the objection to the creditor and all heirs. Follow court service rules to preserve your defenses.
- Attend a Hearing. Present evidence such as expert reports, loan records and correspondence. Show how the lender violated usury limits or engaged in unfair practices.
- Seek a Court Ruling. If the court disallows or reduces the claim, the estate preserves assets for beneficiaries. If denied, consider remedies under the Utah Unfair and Deceptive Trade Practices Act § 13-11-4.
Helpful Hints
- Track deadlines: Utah Code § 75-3-801 sets a three-month window to present claims.
- Document predatory elements: excessive fees, hidden rate hikes or bait-and-switch tactics.
- Obtain an independent appraisal to expose inflated loan values.
- Use Utah’s online docket search to monitor probate filings.
- Consult a probate attorney if you face complex lending issues.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a licensed attorney to address your specific situation.