Quick Read Summary (TLDR)

Credit card debt in Florida is the responsibility of the deceased person’s estate, not the surviving family members, unless they were a co-signer. Creditors must follow strict statutory deadlines and procedures to file a claim against the estate during the Florida probate process. Importantly, certain assets like homestead property and life insurance proceeds are protected from these unsecured creditor claims. As unsecured debt, credit card balances are the lowest priority (Class 8) for payment, meaning they are only paid after higher-priority debts, and often go unpaid if the estate is insolvent.

It is important that families do not attempt to “go it alone” and risk personal liability or loss of inheritance in Florida probate matters. Reach out to South Florida Law for representation by calling (954) 900-8885 or via our contact form.

When a Florida resident passes away with outstanding credit card debt, surviving family members often wonder whether they will be personally responsible for paying those balances. The short answer is no — but that does not mean the debt simply disappears. Florida law provides creditors with a structured legal process to pursue repayment from the decedent’s estate, and understanding how that process works is essential for anyone serving as a personal representative or expecting an inheritance.

Credit Card Debt Is the Estate’s Responsibility

Under Florida law, debts owed by a deceased person are the legal responsibility of the estate, not the responsibility of the surviving spouse, children, or other beneficiaries. Florida is not a community property state, which means credit card balances held solely in the decedent’s name do not automatically transfer to a surviving spouse. The only exception arises when a family member was a co-signer or joint account holder on the credit card. In that situation, the surviving co-signer remains liable for the balance.

Credit card debt is classified as unsecured debt, meaning no collateral backs the obligation. If the estate lacks sufficient assets to cover the balance, the credit card company may have no further options to collect.

How Creditors File Claims Against a Florida Estate

Florida Statutes, Chapter 733, Part VII, governs the creditor claims process during probate. Once a personal representative is appointed, one of the first duties is to publish a Notice to Creditors in a local newspaper for two consecutive weeks, alerting potential creditors that a probate case is open.

Under Florida Statute 733.702, creditors who receive only the published notice have three months from the date of first publication to file a claim. Known or reasonably ascertainable creditors must also receive direct written notice and have 30 days from service to file. Missing these deadlines permanently bars the claim.

Florida Statute 733.710 establishes an absolute two-year statute of repose. Regardless of whether probate was opened or notice published, no creditor may bring a claim more than two years after the date of death — with the narrow exception of recorded mortgages and security interests.

Not All Estate Assets Are Available to Creditors

Even when creditors file valid claims, certain assets are protected under Florida law. The most significant protection applies to homestead property, referring to the decedent’s primary residence. Under the Florida Constitution, homestead is exempt from unsecured creditor claims and passes directly to the surviving spouse or heirs. However, mortgages, property tax liens, and contractor liens still apply.

Additional exempt assets include household furniture and furnishings up to a statutory value, up to two motor vehicles used by the decedent or immediate family (each weighing under 15,000 pounds), and qualified college tuition programs such as Florida 529 Savings Plans. Life insurance proceeds payable to a named beneficiary and jointly held accounts with rights of survivorship also pass outside of probate and beyond the reach of most creditors.

The Priority System for Paying Creditor Claims

When estate assets are available, Florida Statute 733.707 establishes an eight-class priority system determining the order debts are paid. Administration costs and attorney fees come first (Class 1), followed by funeral expenses (Class 2), federal debts and taxes (Class 3), and medical bills from the decedent’s last 60 days of life (Class 4). The family allowance occupies Class 5, and child support arrearages fall into Class 6.

Credit card debt sits in Class 8 — the lowest priority. All higher-priority obligations must be paid in full before any credit card company receives payment. For example, if an estate holds $50,000 in assets but owes $40,000 in final medical bills and $20,000 in credit card debt, the medical provider receives full payment first as a Class 4 creditor. The credit card companies, as Class 8 creditors, would split just $10,000 on a pro-rata basis.

Class 7 creditor claims,refer to business debts acquired after a person’s death due to the continued operation of their company.

When an estate is insolvent, meaning total debts exceed total assets, then the personal representative must pay creditors in strict statutory order. Paying a lower-priority creditor before a higher-priority one can expose the personal representative to personal liability.

“Paying a lower-priority creditor before a higher-priority one can expose the personal representative to personal liability.”

The Importance of An Attorney

Managing the probate creditor claims process involves strict deadlines, complex priority rules, and significant legal consequences for mistakes. It is highly recommended that anyone serving as a personal representative or dealing with a loved one’s outstanding debts consult with an experienced Florida probate attorney. A knowledgeable lawyer can help identify which debts must be paid, which claims can be challenged, and which estate assets are protected, ensuring the estate is administered properly and the interests of beneficiaries are preserved.

South Florida Law

South Florida Law brings years of focused experience in Florida probate, estate planning, and real estate law — providing clients with knowledgeable guidance through every stage of the creditor claims process. Our firm’s attorneys understand the nuances of Chapter 733 and work diligently to protect estate assets, challenge questionable claims, and ensure personal representatives fulfill their statutory obligations without unnecessary exposure to liability. South Florida Law offers the best of both worlds: the personalized attention and accessibility of a boutique practice, with the depth of resources and multilingual capabilities typically associated with larger firms (we serve clients in English, Farsi, Russian, and Spanish).

Are you facing a probate matter or need to learn more about how creditor claims may affect an estate? Contact South Florida Law by calling (954) 900-8885 or by reaching out via our contact form.