Probate cases allow for creditor claims to be either paid, denied or settled. If there are sufficient assets in the estate and the claim is not disputed and a claim is filed within the statutory time frames after publication of notice to creditors or actual service on the creditors. If it is fully disputed as not legit or not recognized for the amount claimed the personal representative can indicate what if any portion of the claim they do not recognize. The creditor then must either abandon the claim or bring an independent action - a lawsuit to enforce the claim. From there the parties can agree on a settlement of the claim and how much will be considered owed or pursue estate litigation in the probate court.
A homeowner filed a claim against the Michael Jackson estate stating that he had done $234,000 worth of damage to a Las Vegas home then had filed a lawsuit to pursue the claim but the estate and homeowner agreed to an undisclosed settlement. It is merely the latest issue in what has seen a large number of creditor claims and probate litigation.
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