What happens if a creditor files a claim after the 90-day notice period ends? — North Carolina

Short Answer

Under North Carolina’s “nonclaim” statute, most creditor claims that are not presented by the deadline are forever barred. If the personal representative properly published the notice to creditors and mailed notice to any known or reasonably ascertainable creditors, a late claim will typically be rejected as untimely. Some claims are not subject to the bar (for example, federal claims, state/local tax claims, actions to enforce liens, and claims limited to insurance coverage), and different timelines apply to claims that arise after death. The clerk will file a late claim, but the personal representative decides whether to allow or reject it.

How North Carolina Law Applies

After the court appoints a personal representative (PR), the PR must publish a general notice to creditors for at least four consecutive weeks and mail a copy to known or reasonably ascertainable creditors within 75 days. The published notice sets a claims deadline at least three months after the first publication. If a creditor who received mailed notice files after 90 days from mailing and after the published deadline, the claim is generally barred. Even without mailed notice, a creditor who files after the published deadline is usually barred—unless an exception applies. The clerk does not screen late claims; they are placed in the estate file and the PR decides whether to allow, reject, or “refer” the claim. If rejected, the creditor has three months after written rejection to sue, but the suit will be dismissed if the claim is time-barred by statute.

Example: A hospital bill existed before death. The PR publishes notice and mails the notice to the hospital. If the hospital submits its claim five months after mailing, the PR can reject it as untimely and the claim is barred. By contrast, a mortgage lender can still foreclose its lien on the property even if it did not file a claim by the deadline (though any unsecured portion may be barred). Likewise, an auto-accident claim limited to insurance coverage can proceed despite the estate’s claims bar, but only up to the insurance available.

Key Requirements

Publication: PR must publish general notice once a week for four consecutive weeks; the notice must set a deadline at least three months after first publication.
Mailing to known creditors: Within 75 days after appointment, the PR must mail or deliver the notice to creditors who are known or reasonably ascertainable. If the mailed 90-day period ends later than the published date, the mailed notice must state that later, creditor-specific deadline.
Timely presentation: A claim must be in writing, state the amount and basis, include the creditor’s name/address, and be delivered to the PR or the clerk by the applicable deadline.
Effect of late filing: Claims arising before death that miss the deadline are “forever barred” unless an exception applies.
Claims arising at or after death: Must generally be presented within six months of when the claim arises (or when due, if based on a post-death contract with the PR).
Exceptions to the bar: Claims of the United States; State/local tax claims; actions to enforce mortgages, deeds of trust, liens, and other security interests; and claims limited to applicable insurance or UM/UIM coverage. Certain contingent real estate warranty claims are also excluded.
Pending lawsuits at death: Substitution of the PR must be made by the claim deadline for the lawsuit to count as a timely presented claim.
Clerk practice: The clerk accepts late claim filings; the PR decides to allow, reject, or refer the claim. Disputes can be brought as an estate proceeding before the clerk.

Process & Timing

PR publishes general notice and mails notice to known or reasonably ascertainable creditors within 75 days of appointment.
Creditors present written claims to the PR or file with the clerk by the deadline (the published date, or the creditor-specific 90-day mailed deadline if later).
If a creditor files late, the clerk places it in the file; the PR reviews it.
PR may allow, pay, compromise, refer, or reject the claim. Typically, PR rejects late, non-exempt claims as time-barred.
If rejected in writing, the creditor has three months to file suit; otherwise the claim is barred. Even if suit is filed, a time-barred claim will not be recoverable.
Payment order: If allowed, claims are paid by statutory priority. The PR must avoid paying barred or lower-priority claims prematurely, or risk personal liability.

What the Statutes Say

Exceptions & Pitfalls

Secured claims: A late claim does not prevent a lender from enforcing a mortgage, deed of trust, or lien against property. The in rem right survives even if any unsecured deficiency is barred.
Insurance carveout: Lawsuits to establish liability limited to available insurance (including UM/UIM) are not subject to the claims bar, but recovery is limited to coverage.
Federal and tax claims: Claims of the United States and state/local tax claims are not barred by the nonclaim deadline.
Known creditors: Creditors who can show they were known or reasonably ascertainable may challenge a time bar if they did not receive required mailed notice. The PR can dispute that entitlement, and the creditor bears the initial burden to show it.
Pending suits: If a case was already pending when the decedent died, a timely motion to substitute the PR must be made by the published deadline; missing it can bar recovery against the estate.
Late publication: Procedures and timelines can change, and special rules apply if publication occurs years after death. When in doubt, ask the clerk or counsel.
PR liability: Paying a barred or lower-priority claim can expose the PR to personal liability. Document decisions and follow the statutory priority order.

Helpful Hints

Personal representatives: Keep a list of potential creditors (bills, statements, contracts) and mail notice to each within 75 days of appointment.
Confirm publication details with the newspaper and keep the affidavit of publication and your affidavit of mailed notices for the court file.
When a late claim arrives, send a prompt written allowance or rejection so everyone knows the next steps and deadlines.
Creditors: If you believe you were entitled to mailed notice, include facts showing how you were known or reasonably ascertainable when you submit your claim.
If a claim is covered by insurance only, tell the PR and insurer quickly; you may proceed against coverage even if the estate is closed to other claims.

Disclaimer: This article is general information about North Carolina law, not legal advice. Reading it does not create an attorney-client relationship.

Talk to a Probate Attorney

If you’re facing a late-filed creditor claim or need to decide whether to allow or reject a claim, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

What happens if a creditor files a claim after the 90-day notice period ends?: North Carolina