[RikaStrom]

Typically, debts must be paid with the assets of the estate (whn you die, what you own goes toward what you owe). If the estate is broke, a letter stating that the estate is closed, broke and that the creditor will not be getting paid is likely necessary. The executor of the estate should handle creditors.

In Texas, if you do not leave a will, the creditors cannot collect from family members. If you do leave a will, naming an executor, they most definitely will go after family members. Then the whole "get a letter, the estate is broke" thing comes in to play.

Happened to one of my co-workers when his mother passed away leaving no will, the only reason I have this tidbit of trivia.

[SnakeDoctor]

I’m not an estate lawyer (though I am an attorney in Texas), but ...

If there is no executor/will, I think creditors can drive the estate into probate court and have an executor forcibly assigned. Just because there is no will does not mean the family can bolt with money/assets without paying the debts from that money/assets. If someone has a $50K estate, $25K in debt, and no will ... the inheritance would be done through probate court, after the debts are paid.

SnakeDoc