Can You Collect from an Estate? Creditor Rights After Death

When someone dies with outstanding debts, creditors often assume their ability to collect ends with the debtor’s life. In reality, Louisiana law provides a structured process for creditors to file claims against the deceased’s estate, provided it’s done correctly and within the appropriate timeline. 

Whether you’re a lender, landlord, service provider, or business owner owed money, understanding how estate claims work is essential to preserving your rights. 

Understanding Succession in Louisiana 

In Louisiana, the legal process for transferring a deceased person's assets is called succession. This process includes: 

• Appointing an executor (testate succession) or administrator (intestate succession) 

• Gathering and inventorying the estate’s assets and liabilities 

• Paying outstanding debts 

• Distributing remaining assets to heirs or legatees 

Creditor claims are addressed as part of this process, but timing and procedure are critical. 

  

Who Pays the Debts? 

Debts do not automatically disappear upon death. However: 

• Heirs are not personally responsible for the deceased’s debts unless they co-signed or guaranteed them. 

• Creditors must pursue recovery through the estate itself. 

• If no succession is opened, creditors may petition the court to initiate one in order to assert their rights. 

How to File a Creditor’s Claim 

To collect from an estate in Louisiana, creditors must: 

1. Confirm whether succession has been opened by checking the court records in the parish where the decedent resided. 

2. Submit a formal, written claim to the executor or administrator of the estate. 

3. Provide documentation supporting the claim, such as contracts, invoices, judgments, or promissory notes. 

4. If no response is received, file a petition with the succession court to enforce the claim. 

All claims must be verified (signed under oath) and filed within the appropriate period before the estate is closed or assets are distributed. 

Priority of Payment 

If there are more claims than available assets, Louisiana law prioritizes the order in which debts are paid: 

1. Court costs and estate administration fees 

2. Secured debts (e.g., mortgages) 

3. Funeral expenses and taxes 

4. General unsecured debts (e.g., credit cards, personal loans) 

If the estate is insolvent, lower-priority creditors may receive only partial payment—or nothing at all. 

  

What If No Succession Is Filed? 

If no one opens succession and the deceased had assets, a creditor may file a petition to be appointed as the administrator of the estate. This allows the creditor to initiate the claims process and potentially recover from estate property. 

Why Legal Guidance Matters 

Navigating succession law, timelines, and claim filing procedures can be challenging. Mistakes in documentation or delay in filing often result in denied claims. Additionally, if the estate involves real property, business assets, or competing creditor claims, legal representation becomes even more critical. 

At Title Stream, we represent creditors seeking to collect from estates and guide them through the legal process to preserve and enforce their rights. Whether you are asserting a claim in an ongoing succession or initiating proceedings yourself, our team provides the clarity and legal structure needed to move forward.