What Happens If a Creditor Files a Claim After the 90-Day Notice Period Ends?

Short answer: Under Nebraska probate practice, a claim filed more than 90 days after the published notice to creditors is generally barred unless the court allows the late claim for good cause. Secured creditors may still enforce collateral outside probate. If you are a creditor or a personal representative, act quickly because remedies and exceptions are limited and fact-specific.

Detailed Answer — How Nebraska handles late creditor claims

When someone dies in Nebraska and an estate goes through probate, the personal representative (executor or administrator) must notify potential creditors that claims must be presented within a set period. Nebraska law provides procedures for notice to creditors and for presenting claims against an estate. See the Nebraska probate statutes concerning creditor claims (Neb. Rev. Stat. chapter 30). For an overview of the statutory provisions, see: https://nebraskalegislature.gov/laws/statutes-chapters.php?chapter=30

Typical timeline and the 90-day (three-month) deadline

Under the usual procedure, a notice to creditors is published and creditors have a limited time to present claims — commonly three months from the date of the first published notice. If a creditor does not present a claim within that statutory notice period, the claim is normally barred and the estate can proceed to distribute assets without paying it.

What “barred” means in practice

• If a creditor files a proof of claim after the deadline, the personal representative typically objects and asks the probate court to disallow the claim as untimely.
• If the court disallows the claim as untimely, the creditor loses the right to recover from estate assets in probate. The creditor may, however, retain any separate non-probate remedies that are independent of the probate process (for example, enforcement of a valid security interest against collateral).
• Because estates frequently pay distributions after the claim period expires, creditors with late claims who try to enforce them against distributed assets face additional hurdles (e.g., tracing or recovery actions against beneficiaries), and statutes or case law may limit recovery from beneficiaries who received distributions in good faith.

Common exceptions and routes to allowance of a late claim

Nebraska courts can, in limited circumstances, allow a late claim. Typical bases include:

• Actual notice: If the personal representative or estate had actual knowledge of the debt and treated it as a claim (for example, negotiated with the creditor or promised payment), the court may permit the late claim.
• Excusable neglect or good cause: If the creditor can show a reasonable excuse for missing the published deadline (serious illness, improper or missing notice, reliance on incorrect information), a court may allow the claim after weighing prejudice to the estate and beneficiaries.
• Fraud or failure of notice: If the required notice procedures were not followed correctly, or if notice was defective so that creditors were not fairly informed, the court may reopen claim rights.
• Secured creditors: A creditor holding a valid security interest in estate property (a mortgage, UCC lien, etc.) generally retains rights against the collateral outside probate; filing late in probate does not necessarily extinguish lien rights, though enforcement paths differ.

How the court evaluates a late-claim request

The probate judge will look at several factors when deciding whether to allow a late-filed claim:

• Whether the creditor had actual notice of the probate or a reason to expect notice;
• Why the creditor missed the deadline and whether the excuse is reasonable;
• Whether allowing the claim would prejudice the estate or beneficiaries (for example, if distributions already occurred); and
• Whether the personal representative acted properly in giving notice and administering the estate.

Practical consequences for creditors and personal representatives

Creditors: If you find you missed the 90-day deadline, gather all documentation showing when you learned of the decedent’s death, any contacts with the personal representative, statements or invoices, and reasons for the delay. File the claim promptly and be prepared to move the court for leave to file late, explaining excusable neglect or other grounds.

Personal representatives: Before approving distributions, confirm the statutory notice period has passed and that no timely claims are pending. If a late claim arrives, consult counsel about whether to contest it, allow it, or seek court guidance. Paying a late claim without court approval can create liability if the payment adversely affects creditors or beneficiaries.

Where to look in Nebraska law

Nebraska’s probate statutes govern notice to creditors, timelines, and the allowance or disallowance of claims. For the detailed rules and any recent changes, consult the Nebraska Revised Statutes related to probate (Chapter 30) and the Nebraska Judicial Branch forms and instructions. A helpful starting point is the Nebraska Legislature’s statutes page for Chapter 30: https://nebraskalegislature.gov/laws/statutes-chapters.php?chapter=30

Helpful Hints

• If you are a creditor, act immediately on learning of someone’s death — register the claim and preserve evidence of any communications that show you tried to present the claim.
• If you are a personal representative, do not distribute estate assets until the statutory claim period has passed or you have court approval to close — distributions made before resolving known claims can expose you to liability.
• Keep careful records: notice publication dates, mailing receipts, and any contact with creditors.
• If you receive a late claim, consult a probate attorney promptly about whether the claim should be allowed, litigated, or settled.
• Secured creditors should review their lien instruments and consider non-probate remedies (foreclosure, repossession) if appropriate; probate deadlines do not always eliminate lien rights.
• If notice procedures were defective (wrong publication, failure to send required mail), a late claim may have a stronger chance of being allowed.

Disclaimer: This article explains general principles of Nebraska probate practice and is not legal advice. Laws change and outcomes depend on specific facts. For advice about a particular estate or claim, contact a licensed Nebraska attorney.