NC Creditor Claims Period: 90-Day Deadline and How It Works

NC Deep Dives 10 min read

Settling an estate in NC? Afterpath guides you through probate step by step — $199 vs $10,000+ attorney fees.

One of the Most Important Deadlines in NC Probate

The 90-day creditor claims period is the central event in North Carolina probate administration. Everything before it, qualifying as executor, inventorying assets, publishing notices, is preparation. Everything after it, evaluating claims, paying creditors, distributing to beneficiaries, flows from it.

Getting the creditor claims period right matters enormously. Miss a procedural step and you may extend the estate’s exposure to claims. Fail to properly reject an invalid claim and you may pay a debt that was not owed. Distribute assets before the period closes and you may face personal liability as executor.

This article explains exactly how NC’s creditor claims period works, what you are required to do, and how to handle claims when they arrive.

The Legal Framework

North Carolina’s creditor claims period is governed by NC General Statutes Article 19 of Chapter 28A (Estate Administration). The key statute is NC General Statutes Section 28A-19-3, which establishes the filing deadline for creditor claims.

The 90-day clock starts running from the date the executor or administrator first publishes the required Notice to Creditors in a local newspaper. This is not 90 days from the date of death or from the date the executor qualifies. It is 90 days from the date of first publication.

Any creditor who fails to file a claim within that 90-day window is forever barred from collecting from the estate (with very limited exceptions). This is a hard cutoff that protects the estate, allows it to be closed, and lets beneficiaries eventually receive their inheritance.

Publication Requirements: Notice to Creditors

Before the 90-day period can begin, the executor must publish a Notice to Creditors in a newspaper that qualifies under NC law. The notice must be published in a newspaper of general circulation in the county where the estate is being administered.

What the notice must include:

The name of the decedent
The name of the personal representative (executor or administrator)
The county of administration
A statement that creditors must present their claims within 90 days of the first publication
Contact information for where claims should be submitted

Publication frequency: NC General Statutes Section 28A-14-1 requires that the notice be published once a week for four consecutive weeks. The 90-day claims period begins from the date of the first publication (not the last).

Many counties have designated newspapers for legal notices. The clerk of court’s office can direct you to the appropriate publication. Legal notice publication typically costs between $100 and $300 depending on the newspaper and notice length.

After publication: Save copies of the published notices. The publisher will typically provide an affidavit of publication, which should be filed with the clerk of court and kept in your estate records.

Known Creditors: Direct Notification Required

Publication is not enough for creditors you already know about. NC law (and constitutional due process principles established by the US Supreme Court in Tulsa Professional Collection Services v. Pope) requires that known or reasonably ascertainable creditors receive direct written notice of the estate and the claims deadline.

Who are known creditors?

Mortgage lenders and other secured creditors
Credit card companies and banks with outstanding balances
Medical providers (hospitals, doctors, nursing homes)
Utility companies with unpaid bills
Any vendor or individual to whom the deceased owed money
NC DHHS if the deceased received Medicaid benefits (see our Medicaid estate recovery article)

How to provide direct notice: Send written notice by first-class mail to each known creditor. The notice should include the same information as the published notice: the estate name, the personal representative’s contact information, and the 90-day claims deadline.

Document every notice you send. Keep copies of letters and proof of mailing (certified mail with return receipts provides the best documentation, though first-class mail is legally sufficient).

How Creditors File Claims

Creditors file claims against the estate by submitting a written claim to the personal representative. The claim must:

State the basis for the claim (what the debt is for)
State the amount claimed
Be filed within 90 days of first publication of the Notice to Creditors

Claims must be filed with the personal representative, not with the clerk of court. The personal representative then has the obligation to evaluate each claim and either allow (accept) or reject it.

The NC superior court clerk’s office provides a standard claim form, though creditors are not required to use it. Any written statement that identifies the debt and amount and is submitted within the deadline qualifies as a claim.

Priority of Claims in NC Probate

Not all claims are equal. NC law establishes a specific priority order for paying claims when the estate does not have enough assets to pay everyone. Under NC General Statutes Section 28A-19-6, claims are paid in this order:

Costs of administration (executor fees, attorney fees, court costs, publication costs)
Funeral and burial expenses (reasonable amounts)
Allowances to surviving spouse and children (year’s allowance, homestead allowance, personal property allowance)
Taxes and debts owed to the United States (federal income tax, federal estate tax)
Taxes and debts owed to NC (NC income tax, Medicaid estate recovery claims)
Judgments (court-ordered debts in the order they were docketed)
All other claims (general unsecured debts, in order received if assets are insufficient)

If the estate runs out of money before all claims are paid, lower-priority creditors receive nothing. Beneficiaries do not receive anything until all valid claims are paid in full (or the estate is found insolvent and creditors receive their proportionate shares).

Evaluating and Responding to Claims

Once a claim is filed, the executor has 30 days to allow or reject it (NC General Statutes Section 28A-19-7). If the executor fails to act within 30 days, the claim is deemed rejected by operation of law.

Allowing a claim: If the claim is valid, the executor notifies the creditor that the claim is allowed. Payment is made after the 90-day period closes and all claims have been evaluated, in the priority order described above.

Rejecting a claim: If the claim is invalid, disputed, or the estate does not have enough assets to pay it, the executor sends a written notice of rejection. The rejection must be sent by certified mail. The creditor then has 90 days from receipt of the rejection notice to file a lawsuit against the estate to collect. If they do not file suit within that window, the claim is forever barred.

Grounds for rejecting a claim:

The claim is barred by the statute of limitations (the debt is too old)
The debt was discharged in bankruptcy
The claimed amount is incorrect or inflated
The claim was not properly filed within the 90-day window
The debt was not actually owed by the deceased
The debt was a co-signed obligation that should be pursued against the co-signer

Keep detailed records of every claim received, every allowance or rejection, and every communication with creditors.

Personal Liability Risks for Executors

North Carolina law imposes personal liability on executors who distribute estate assets before all valid creditor claims have been paid. This is one of the most serious risks executors face.

If you distribute assets to beneficiaries, and a creditor later proves they had a valid claim that was not paid, you can be held personally liable for the unpaid amount, up to the value of what you distributed.

The sequence must be:

Publish Notice to Creditors
Notify all known creditors directly
Wait for the 90-day period to close
Evaluate all claims received
Pay valid claims in priority order
Then (and only then) distribute remaining assets to beneficiaries

This is non-negotiable. Even if beneficiaries are pressuring you to distribute assets quickly, protecting yourself from personal liability requires following this sequence.

What Happens When Claims Exceed Estate Assets

If the total of valid creditor claims exceeds the estate’s assets, the estate is insolvent. In this case:

Claims are paid in priority order until the money runs out
Lower-priority creditors (and beneficiaries) receive nothing
The executor is generally not personally liable for unpaid debts of an insolvent estate, as long as the priority rules were followed

For guidance on handling insolvent estates or particularly complex creditor situations, consult an NC probate attorney. The stakes are high enough that professional guidance is worth the cost.

Our article on dealing with creditors during probate in NC covers practical strategies for managing specific types of creditor claims.

How Afterpath Keeps You on Track With Creditor Claims

The creditor claims period has multiple moving parts: publication deadlines, direct notification requirements, claim evaluation windows, rejection notices, and payment sequencing. Missing any one of them creates legal risk.

Afterpath’s task management system is built around NC’s probate timeline, including the creditor claims period. It tracks when you published the Notice to Creditors, calculates when the 90-day window closes, and reminds you of the 30-day window for responding to each claim.

Pathfinder, Afterpath’s NC estate guide, explains each step in plain language. Not sure whether a particular creditor qualifies as a “known creditor” requiring direct notice? Pathfinder can help you think through the analysis. Not sure whether to allow or reject a particular claim? Pathfinder can walk you through the evaluation process.

Afterpath’s document vault stores publication records, affidavits of publication, direct notification letters, claim submissions, allowance and rejection notices, and creditor correspondence, all organized by creditor and date. This documentation is your protection if any claim is disputed.

The NC compliance engine monitors your adherence to the required sequence and flags any gaps or upcoming deadlines, reducing your exposure to personal liability as executor.

Frequently Asked Questions

Q: When exactly does the 90-day creditor claims period start?

A: The 90-day period starts from the date of the first publication of the Notice to Creditors in a qualifying NC newspaper. Not from the date of death, not from the date you qualified as executor. The date of first publication is the trigger.

Q: What if a creditor claims they did not receive notice and files after the 90-day period?

A: If the creditor is an unknown creditor (one you had no reason to know about), publication in the newspaper is sufficient notice. Their claim filed after the 90-day window is barred. If the creditor is a known creditor who should have received direct notice, and you failed to send it, the constitutional due process requirements may entitle them to file despite the 90-day window. This is why direct notification of known creditors is essential.

Q: Do I have to pay medical bills from the last illness?

A: Medical bills are general unsecured creditor claims (Category 7 in the priority list above) unless they qualify as administrative costs. They must be paid after higher-priority claims are satisfied. If the estate has sufficient assets, they will be paid. If the estate is insolvent, they may not be paid in full or at all.

Q: How does Afterpath help me track creditor claims?

A: Afterpath’s task management system tracks every claim received, the date filed, the amount, and the 30-day response window. Pathfinder helps you evaluate each claim, and the document vault stores all claim documentation. The NC compliance engine ensures you follow the required payment sequence before distributing assets. Join the waitlist at /waitlist/ for early access.

Q: Can I distribute assets to beneficiaries while waiting for the 90-day period to close?

A: No. Distributing assets before all valid creditor claims are paid can expose you to personal liability as executor. Wait for the 90-day period to close, evaluate all claims, pay them in priority order, and then distribute the remainder to beneficiaries.

The Creditor Claims Period Protects Everyone

Handled correctly, the 90-day creditor claims period protects the estate, protects beneficiaries by ensuring they receive assets free of creditor claims, and protects you as executor from personal liability.

Afterpath’s task management system, Pathfinder, document vault, and NC compliance engine work together to keep you on track through every step of this critical period.

Join the Afterpath waitlist at /waitlist/ and administer the estate with confidence, clarity, and the right tools for North Carolina probate.

Ready to make this easier?

Afterpath guides you through every step of the probate process.

Join the Waitlist