Disclaimer: This is general information, not legal advice. I am not a lawyer. If you need legal advice about a specific situation, consult a licensed New York attorney.
Detailed answer: What happens when a creditor files a claim after the 90‑day creditor notice period in New York?
When someone dies and the estate enters probate or administration in New York, the personal representative (executor or administrator) must notify creditors. New York law sets a time window for creditors to present claims against the estate after that notice. If a creditor files or presents a claim after the statutory notice period has passed, the claim is generally barred — but the court can allow late claims in certain circumstances.
Key legal framework
The Surrogate’s Court Procedure Act (SCPA) controls notice to creditors and presentation of claims in New York. Under SCPA § 1802 the personal representative must publish and mail notice to creditors; that notice creates the statutory window for filing claims. See SCPA § 1802: https://www.nysenate.gov/legislation/laws/SCPA/1802
SCPA provisions outline how claims are presented and when late claims may be considered by the Surrogate’s Court. See SCPA § 1803 for rules about presenting and proving claims: https://www.nysenate.gov/legislation/laws/SCPA/1803
Practical effect of missing the 90‑day period
- Barred claim: If the creditor had proper notice under SCPA and does not present the claim within the statutory period specified in that notice (frequently 90 days from the date of mailing or last publication), the creditor’s probate claim is ordinarily barred — the estate’s personal representative and the Surrogate’s Court may refuse to allow payment.
- Limited remedies: A barred creditor usually cannot force the estate to pay from estate assets through the probate claim process unless the court grants leave to present a late claim.
- Court discretion for late claims: The Surrogate’s Court has discretion to permit a creditor to present a late claim if the creditor shows a good reason (excusable neglect, lack of actual notice, fraud, mistake, or other equitable grounds). The court weighs the equities: whether the estate and other beneficiaries would be prejudiced, whether the claimant can show a valid debt, and whether the delay was excusable.
- Effect on underlying debt lawsuit: Missing the probate claim deadline does not always eliminate other collection avenues. The creditor may still sue the deceased person’s administrator personally (if appropriate) or pursue an independent action against nonprobate property, as long as applicable statutes of limitations have not expired. Those separate causes of action must be evaluated on their own legal timelines and rules.
Common reasons courts allow late claims
- The creditor never received actual mailed notice and could not reasonably have known about the probate.
- The creditor relied on incorrect information from the personal representative or another party.
- Excusable neglect or unavoidable delay (medical emergency, overseas posting, etc.).
- The claim arose only after the notice period (for example, an unexpected cost directly tied to the administration that was not discoverable earlier).
- Allowing the claim would cause little or no prejudice to beneficiaries and estate administration is not substantially delayed.
What the creditor must do to try to file late
- Contact the personal representative or the estate attorney promptly. Sometimes the executor will agree to allow a claim or to pay it from estate assets even if late.
- Gather proof: the underlying contract or invoice, communications, proof of why the notice was not received, and any evidence showing the debt is valid and the delay was excusable.
- File a petition in Surrogate’s Court asking for leave to present a late claim. The petition should explain the reasons for the delay, attach the claim, and provide supporting evidence.
- Be prepared for opposition: beneficiaries or the personal representative may oppose the petition, arguing prejudice or lack of good cause.
How the court decides
The Surrogate’s Court examines the facts and equitable considerations. The court may:
- grant leave to file and allow payment from estate assets (if funds remain and the claim is valid);
- allow the claim only to the extent it does not prejudice others; or
- deny leave if the creditor cannot justify the delay or if allowing the claim would unfairly harm beneficiaries or impede administration.
Other timing rules to remember
- Different rules may apply to certain governmental claims (e.g., tax claims) or secured claims; those claims may have separate procedures and priorities.
- The statute of limitations for the underlying debt (contract, tort, etc.) runs independently of the probate notice period. A creditor should check whether the underlying limitation period has already expired.
Helpful Hints
- If you are a creditor who missed the 90‑day period, act quickly. Delay makes it harder to convince the court that your late filing was excusable.
- Keep written records showing attempts to collect or communications with the decedent before death. Those records can support your claim and explain any delay.
- If you are a personal representative, keep careful records of mailed notices and publications. Proof that proper notice was given strengthens your position if late claims are filed and you oppose them.
- Before filing a petition to present a late claim, check both the probate notice rules (SCPA) and the statute of limitations that governs the underlying debt.
- Consider mediation or negotiation with beneficiaries or the personal representative — sometimes estates resolve disputed late claims without costly litigation.
- Consult a New York attorney experienced in estate administration or creditor’s claims to evaluate likelihood of success and the best procedural route.
Relevant statutes (for reference): SCPA § 1802 (notice to creditors): https://www.nysenate.gov/legislation/laws/SCPA/1802 and SCPA § 1803 (presentation and proof of claims): https://www.nysenate.gov/legislation/laws/SCPA/1803