How do I collect an unpaid invoice from a deceased customer's estate?
How to collect an unpaid invoice after a customer dies
Short answer
When a customer dies with an outstanding balance, you become an unsecured creditor of their estate. You need to file a creditor claim with the probate court in the county where they died, before the claim deadline (typically 90 days to a year after the estate is opened). Contact the estate's executor or administrator — named in the will or appointed by the court — and submit your invoice with documentation of the debt.
Death doesn't cancel a debt. The obligation transfers to the deceased person's estate, which is managed by an executor (if there's a will) or an administrator (appointed by the court when there's no will). Your first step is finding out whether an estate has been opened in probate court. In most US states, estates over a certain value threshold must go through probate — check the county probate court's public records.
Once you've identified the estate, send a formal written notice of your claim to the executor or administrator. Include the original invoice, any contract or agreement, a description of services provided, and your contact information. Be clear about the total balance including any accrued late fees. Keep a copy of everything and send it via certified mail so you have delivery confirmation.
Most states have a creditor claim deadline — typically 90 days to 12 months after the estate is published in a local newspaper or after you receive direct notice. Missing this deadline often means your claim is barred forever, so move quickly. If you're unsure about the deadline in a specific state, check with the county probate court directly or consult a probate attorney for a brief consultation.
Priority matters in probate. Secured creditors (mortgages, car loans) and certain priority claims (funeral expenses, taxes) are paid first. Unsecured business creditors are typically in the middle tier — ahead of specific bequests but behind priority claims. If the estate has insufficient assets, unsecured creditors may receive partial or no payment, and there's nothing more you can do. This is a genuine business risk of extending credit.
For small balances under a few hundred dollars, the time and cost of probate may not be worth it. Write it off, document your collection attempts, and take the tax deduction. For larger balances, the claim process is worthwhile and doesn't require a lawyer in most straightforward cases. Syntharra flags invoices tied to accounts that go silent for extended periods — an early alert that gives you more time to investigate and act before estate assets are distributed.