Detailed Answer
Disclaimer: This article provides general information about Vermont law. It does not constitute legal advice. Always consult a qualified attorney for advice about your specific situation.
When an executor faces a creditor’s claim that appears based on predatory lending to an elderly decedent, Vermont law offers a clear process to challenge the claim in probate court. Follow these steps:
- Review the Claim Package. Obtain all loan documents, promissory notes, security agreements, and correspondence. Look for abusive terms—excessive interest rates, hidden fees, prepayment penalties or unclear disclosures.
- Confirm Filing Deadline. Creditors must submit claims within two months after the first published notice to creditors. See 14 V.S.A. § 1012 (https://legislature.vermont.gov/statutes/section/14/117/01012).
- Prepare an Objection. Under 14 V.S.A. § 1015 (https://legislature.vermont.gov/statutes/section/14/117/01015), file a written objection with the probate clerk before the court’s deadline. In your objection:
- Identify the creditor’s name and the exact amount claimed.
- Explain why the loan violates Vermont’s predatory lending or unconscionability laws (e.g., interest far above the state cap, hidden fees, or deceptive disclosures).
- Cite relevant statutes, such as the prohibition on unconscionable trade practices in consumer credit agreements, 9 V.S.A. § 2356 (https://legislature.vermont.gov/statutes/section/09/073/02356), and the definition of unconscionable agreements in 9 V.S.A. § 2355 (https://legislature.vermont.gov/statutes/section/09/073/02355).
- Gather Evidence. Collect appraisals, expert analyses of the decedent’s capacity at signing, and witness statements. If possible, document communications showing deception or pressure tactics.
- Attend the Hearing. The probate judge will schedule a hearing on the objection. Present your evidence and legal argument to show the lending terms are unfair or illegal under Vermont law.
- Seek Court Ruling. If the judge sustains your objection, the creditor’s claim will be disallowed or reduced. If the judge overrules it, you may appeal under 14 V.S.A. § 1251 (https://legislature.vermont.gov/statutes/section/14/177/01251).
Helpful Hints
- Start early. Probate deadlines are strict; missing them can forfeit your right to object.
- Work with a forensic loan analyst to uncover hidden fees or unrealistic valuation methods.
- Maintain organized records of all communications, filings and court orders.
- Use sworn affidavits from someone who witnessed the decedent’s signing if capacity or undue influence is at issue.
- Contact the probate clerk’s office for filing procedures, self-help guides and local court rules.