Creditors Must Wait for a Personal Representative
When someone passes away owing debts, creditors cannot simply sue the estate or go after the heirs directly. Arizona law requires that a personal representative be appointed first. No proceeding to enforce a claim against a deceased person's estate can begin until that appointment happens.
No proceeding to enforce a claim against the estate of a decedent or his successors may be revived or commenced before the appointment of a personal representative. After the appointment and until distribution, all proceedings and actions to enforce a claim against the estate are governed by the procedure prescribed by this chapter.
A.R.S. § 14-3104This rule creates an orderly process. Instead of a rush of lawsuits, all creditor claims funnel through the probate proceeding where the personal representative can evaluate them, pay valid debts, and challenge questionable ones.
What Happens After Distribution
Once estate assets have been distributed to beneficiaries, a creditor whose claim was not barred still has options. The creditor may pursue recovery from the people who received assets (distributees) under A.R.S. 14-3934, or from the personal representative personally if they are individually liable under A.R.S. 14-3935.
One important exception: secured creditors (those with a lien on specific property, such as a mortgage) can still enforce their security interest without waiting for a personal representative. They only need to go through probate procedures if they are seeking a deficiency judgment beyond the value of their collateral.