Disclaimer — This article is for general educational purposes only. Probate fees, court charges and professional costs change regularly. Executors…
Disclaimer — This content is provided for general educational purposes only. It is not legal advice. Probate procedure, claim-lodgement rules, and limitation periods can change. Creditors with outstanding debts against a deceased estate in Queensland should seek personalised advice from a solicitor experienced in succession or insolvency law before taking action.
When someone dies, their unsecured debts (credit cards, personal loans, unpaid invoices) do not disappear. They become claims against the estate and are payable—after funeral expenses and secured debts—before any inheritance passes to beneficiaries. Understanding the probate timeline, priority rules, and practical claim steps helps creditors recover money efficiently and prevents accidental waiver of rights.
Key Concepts for Creditors
| Term | Meaning | Why It Matters |
|---|---|---|
| Executor / Administrator | Court-appointed personal representative who gathers assets, pays debts, distributes residue | Your contact for all debt-recovery correspondence |
| Grant of probate | Supreme Court document proving the will and executor’s authority | Most institutions will not release estate funds until the grant issues |
| Notice of Intention to Apply | Mandatory online advertisement published by the executor before filing for probate | Triggers a six-week window for creditors to lodge claims |
| Insolvent estate | Estate where liabilities exceed assets | Bankruptcy-style priorities apply; unsecured creditors receive pro-rata dividends |
| Proof of debt | Documentary evidence (contract, invoices, statements) supporting the claim | Lack of proof can see your claim rejected by the executor or Court |
Probate Timeline from a Creditor’s Perspective
| Stage | Typical Duration | Creditor Action |
|---|---|---|
| Death & death certificate issued | 1–2 weeks | Identify outstanding balance; stop additional credit or services |
| Notice of Intention to Apply (online) | Day 1 | Diary a six-week claim deadline; gather documentation |
| 14-day waiting period before filing | Day 1–14 | Send formal claim letter with supporting documents |
| Probate application lodged | Weeks 3–6 | Confirm executor contact details; request written acknowledgment |
| Registry processing | Weeks 6–12 | Interest accrues; consider negotiating part-payment if estate looks insolvent |
| Grant issued; funds released | Weeks 12+ | Expect payment according to statutory priority and executor cash flow |
Priority of Debt Payment
| Order | Type of Creditor | Example |
|---|---|---|
| 1 | Secured creditors | Mortgagee, vehicle financier |
| 2 | Funeral & estate expenses | Funeral director, probate filing fee |
| 3 | Statutory debts | ATO, council rates |
| 4 | Unsecured creditors | Credit cards, trade suppliers, personal loans |
| 5 | Beneficiaries | Only after all debts satisfied |
If the estate is insolvent, unsecured creditors share any surplus after higher-ranking debts on a pro-rata basis under Part XI of the Bankruptcy Act 1966.
How to Lodge an Effective Estate Claim
- Act promptly. The six-week window after publication of the Notice of Intention to Apply is critical; late claims may be paid only after distributions—or not at all.
- Write to the executor (or solicitor) at the address in the notice. Include:
- Full debtor details (name, address, account number)
- Nature of the debt and basis (contract, goods supplied)
- Outstanding balance, interest rate, and calculation to date of death
- Copies of invoices, signed agreements or court judgments
- Request written acknowledgment from the executor within 14 days.
- Negotiate repayment terms where cash flow is tight. Executors often prefer lump-sum settlement to avoid interest and collection costs.
- Monitor the estate’s progress. Ask for updates after probate is granted and again when assets are liquidated.
Interest and Collection Costs
- Interest on contractual debt typically continues to accrue until paid, unless the contract says otherwise.
- Statutory interest on court judgments also runs against the estate at the Queensland rate.
- Collection costs are recoverable only if expressly provided in the contract or judgment.
Dealing with Disputed or Rejected Claims
- Request reasons in writing for any rejection.
- Provide supplementary evidence (witness statements, delivery dockets) within a reasonable period.
- If still unresolved, apply to the Supreme Court of Queensland for directions—usually by originating application under the Uniform Civil Procedure Rules. Costs follow the event; unmeritorious claims risk adverse cost orders.
Insolvent Estates: Special Considerations
- Executors should not pay you ahead of higher-ranking claims—even if you demand immediate payment.
- Creditors may serve a bankruptcy notice or seek appointment of a registered trustee to administer the insolvent estate.
- Dividend distributions follow bankruptcy priorities; expect partial payment only.
Fact Scenario
Background
Home-renovation company supplied $18 000 of work. The customer dies owing $12 000. Executor publishes Notice of Intention on 1 August.
Creditor steps
- 4 August: sends formal claim letter with invoices and signed contract.
- 15 August: executor acknowledges claim; probate due October.
- 28 October: probate granted; home listed for sale.
- 15 December: executor pays secured mortgage, funeral expenses, ATO bill.
- 10 January: unsecured creditors (including the builder) paid in full with statutory interest.
Frequently Asked Questions
Can I sue the executor personally?
Only if they mismanage the estate or pay beneficiaries ahead of your rightful claim. Otherwise sue “The Estate of …”.
Is court judgment necessary before claiming?
No. A contractual debt is sufficient, but a judgment can strengthen your negotiating position and ensure statutory interest accrues.
What if I discover the debt after the estate is distributed?
If the executor followed the notice procedure, recovery against beneficiaries is limited. Apply to the Court, but success depends on circumstances and remaining estate assets.
Do limitation periods still apply?
Yes. The clock stops on the date of death for some causes of action, but not all. Seek advice promptly.
Key Take-Aways for Creditors
- Monitor the online probate notices; the six-week claim window is vital.
- Lodge written claims promptly, with full documentary proof.
- Understand payment priority—secured and statutory debts outrank unsecured claims.
- Interest generally accrues until the estate pays, unless the contract says otherwise.
- If the executor rejects or delays your claim unreasonably, court directions or bankruptcy procedures are available.
Sources / Citations
- Succession Act 1981 (Qld) ss 52–54
- Uniform Civil Procedure Rules 1999 (Qld) rr 599–603
- Bankruptcy Act 1966 (Cth) Part XI — administration of deceased insolvent estates
- Supreme Court of Queensland Fee Schedule 2025 (probate & reseal applications)
- Queensland Law Reporter, Notice of Intention to Apply guidelines (July 2025)