Probate Q&A Series

How can I secure a release or satisfaction for a creditor claim that’s been paid? – North Carolina

Short Answer

In North Carolina probate, the cleanest way to close out a paid creditor claim is to file the creditor’s written withdrawal, satisfaction, or release in the estate file and show the payment (with proof) on your Account (AOC‑E‑506). If the creditor won’t file a release, the executor can ask the Clerk of Superior Court to mark the claim satisfied by motion with vouchers (for example, canceled checks and the paid invoice). Handle this before submitting the Final Account.

Understanding the Problem

In North Carolina, can an executor file something with the Clerk of Superior Court to show that a creditor’s filed claim has been paid and is officially resolved? Here, the executor has already paid one claim and wants the court record to reflect that the claim is satisfied.

Apply the Law

Under North Carolina law, a filed claim is resolved in the court record either by: (1) the creditor filing a written withdrawal/satisfaction, or (2) the executor providing payment proof and asking the Clerk to note the claim as satisfied. The estate’s Account must substantiate every disbursement with acceptable vouchers (such as canceled checks, itemized receipts, or bills marked paid). The Clerk audits the Account before approving the Final Account and issuing discharge. The Estates Division of the Clerk of Superior Court is the forum, and the Final Account is generally due within one year of qualification unless the Clerk grants an extension.

Key Requirements

  • Proof of payment (vouchers): Keep canceled checks, itemized receipts, or invoices marked paid; include them with your Account to substantiate the claim payment.
  • Creditor’s written satisfaction (preferred): Ask the creditor to file a brief written withdrawal/satisfaction referencing the estate file; you may file it on their behalf if they provide it to you.
  • If no creditor release: File a motion/petition in the estate file asking the Clerk to mark the claim satisfied and attach vouchers showing payment.
  • Account reporting: Show the claim payment on AOC‑E‑506 (Account) and align it with the priority/order of claims; include the vouchers.
  • Timing: Secure the release or order before submitting the Final Account, which is generally due within one year of qualification unless extended.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the executor already paid the one filed claim, the next step is to lock down documentation: obtain a short written satisfaction/withdrawal from the creditor and file it in the estate. If the creditor won’t provide that, the executor can move the Clerk to mark the claim satisfied by attaching the canceled check and the invoice marked paid as vouchers and reporting the disbursement on AOC‑E‑506. Doing this before submitting the Final Account helps the Clerk close the loop during audit.

Process & Timing

  1. Who files: Preferably the creditor files a written withdrawal/satisfaction; if not, the executor files a motion/petition. Where: Clerk of Superior Court (Estates Division) in the county where the estate is open. What: File the creditor’s written satisfaction or, alternatively, a motion to mark claim satisfied with vouchers; report the payment on AOC‑E‑506 (Account). When: Do this before filing the Final Account, which is generally due within one year of qualification unless extended.
  2. Clerk review: The Clerk audits the Account. If a creditor release is on file or the vouchers convincingly prove payment, the Clerk can note the claim as satisfied and proceed with account approval. Timing varies by county workload.
  3. Finalization: After the Account is approved, the Clerk issues the discharge order. Keep copies of the filed satisfaction and vouchers with your records.

Exceptions & Pitfalls

  • If the creditor will not cooperate, file a motion in the estate proceeding with solid vouchers; serve the creditor under the estate‑proceeding rules so the Clerk can act.
  • Do not pay claims early unless you are confident the estate is solvent; otherwise, you risk improper priority or pro rata issues when other claims arrive.
  • Use clear vouchers: canceled checks, itemized statements, or bills marked paid. If a voucher is lost, be prepared to provide sworn details.
  • If someone else assumed the debt with creditor consent, file the signed assumption agreement to treat the claim as discharged as to the estate.

Conclusion

To secure a release for a paid claim in a North Carolina estate, file the creditor’s written withdrawal/satisfaction and show the disbursement on AOC‑E‑506 with vouchers. If the creditor will not file a release, ask the Clerk to mark the claim satisfied using a motion with proof of payment. Do this before submitting the Final Account. Next step: obtain the creditor’s written satisfaction or prepare a motion with vouchers and file it with the Clerk of Superior Court.

Talk to a Probate Attorney

If you’re dealing with a paid creditor claim and need a clear court record of satisfaction in a North Carolina estate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.