The personal representative is responsible for approving, paying and/or rejecting creditor claims. In particular, anyone who settles a deceased person’s affairs is accountable for the payment of all legitimate debts. Creditor claims are received two ways – formally and informally.
Formal Notification: The probate process requires publication of the Notice of Petition to Administer Estate published in a newspaper. This publication is to provide official, legal notice to the decedent’s creditors, allowing them time to file claims. A creditor should file a formal Claim within four months after the Court issues Letters to the personal representative. In some situations, however, a creditor may file a claim after the four-month period has expired if they can show notice was not correctly given. For a claim to be considered, the creditor must file their claim with the court and serve a copy of the claim on the personal representative. The claim will be invalid if this isn’t done.  Also, the personal representative must give written notice within four months after issuance of Letters to all known or reasonably ascertainable creditors. During the period of the probate proceedings, the personal representative must continue to give notice as he or she becomes aware of new creditors.
Informal Notification: Informal claims are bills that come to the decedent’s last address. Probate Code §10552 allows the personal representative to pay these bills at their discretion without court approval or without the creditor filing a formal claim if the court granted independent administration authority. In addition, if there has been a written demand for payment, Probate Code §9154 allows the personal representative to pay decedent’s debts within 30 days after the claim period ends without requiring a formal claim unless for some reason the amount or legitimacy of the debt is in dispute.