This article explains, in plain language, the steps a personal representative (executor or administrator) typically follows to clear creditor claims so an estate home can be sold under Delaware law. It assumes no prior legal knowledge. This is general information only and not legal advice; consult a Delaware probate attorney or the Register of Wills for case-specific guidance.

Detailed Answer — step-by-step process

1. Confirm who has legal authority to act for the estate.

   Only the person named in the decedent’s will (the executor) or the person appointed by the Register of Wills or a court (the administrator or personal representative) can manage estate assets and sell estate property. If a will exists, present it to the Register of Wills so the personal representative can be appointed. For general information about Delaware probate procedures, see the Delaware Code (Title 12) and the Register of Wills website: https://delcode.delaware.gov/title12/ and https://courts.delaware.gov/register-of-wills/ .

2. Inventory the estate and locate likely creditors and liens.

   Prepare a complete inventory of estate assets, including the home, bank accounts, investments, vehicles and personal property. Search public records (county recorder/registrar) for recorded liens on the property (mortgages, judgments, tax liens, mechanics’ liens). Contact the Delaware Division of Revenue for potential state tax liens: https://revenue.delaware.gov/. Knowing all secured and unsecured claims early guides how you’ll clear title.

3. Give the notices that Delaware law requires.

   Most estates must notify creditors. That usually includes sending direct written notice to known creditors and publishing a general notice to unknown creditors. Delaware statutory and local probate procedures set notice and claim rules. Check Title 12 of the Delaware Code and the Register of Wills for filing and notice requirements: https://delcode.delaware.gov/title12/ and https://courts.delaware.gov/register-of-wills/. Proper notice starts the statutory period during which creditors may present claims against the estate.

4. Collect and evaluate creditor claims.

   Creditors must present claims in the manner and within the deadline set by law and by the notices you provide. When a claim arrives, verify whether it is timely and valid (supporting invoices, judgments, mortgage statements, etc.). If a claim is disputed, you may reject it; the creditor can then seek payment through the court.

5. Pay valid claims or obtain an order to address them.

   Pay legitimate debts from estate funds in the order required by law (secured claims and certain priority items like taxes often come first). If the estate lacks sufficient cash, the personal representative may need to sell assets — including the home — to pay creditors. In some cases you must obtain court approval before selling real property; in others, the personal representative has statutory authority to sell without separate court permission. Confirm which applies in your situation with the Register of Wills or an attorney (see Title 12 for probate powers and duties): https://delcode.delaware.gov/title12/.

6. Clear recorded liens before closing the sale.

   Work with title companies and lienholders to obtain payoff statements and lien releases. For mortgages and recorded liens, get written payoff amounts and ensure the lender will execute a satisfaction/release when paid. Recordings for mortgage satisfactions or releases must be filed with the county recorder where the property is located so the title is clear at closing.

7. Coordinate escrow and the timing of the creditor-claim period.

   Many title companies and buyers’ lenders want assurance that the title is free of unasserted claims before closing. That can mean waiting until the statutory creditor-claim period has run after publication/notice, or obtaining a court order permitting an early sale and authorizing distribution or escrow holdback to cover possible claims. Discuss timing and protections (escrow holdbacks, sale subject to court approval, or court-supervised sale) with your title company and attorney.

8. Handle taxes and final accounting.

   File any required estate tax returns (state and federal, if applicable). Pay final property taxes or arrange prorations at closing. Prepare a final accounting of receipts and disbursements for the estate and for the beneficiaries, and obtain receipts and releases from paid creditors.

9. Distribute proceeds and close the estate.

   Once claims are paid or properly provided for and the court (if involved) approves distributions, distribute the remaining proceeds to heirs under the will or under intestacy rules. Ask the Register of Wills whether a final filing or petition is necessary to formally close the estate.

When you need court involvement

You should expect court involvement if:

• the will’s provisions are contested;
• the personal representative lacks clear statutory authority to sell real property or creditors object;
• the estate lacks sufficient liquid assets so selling the home is necessary to satisfy creditors and the sale could prejudice unknown claimants.

In those cases, the Register of Wills or the Court of Chancery may need to approve a sale or distribution plan. Refer to Delaware’s probate provisions in Title 12 for statutory guidance: https://delcode.delaware.gov/title12/.

Helpful Hints

• Get a title search early. A title report shows recorded mortgages, judgments, and other liens that must be cleared before closing.
• Obtain written payoff statements from mortgage lenders, tax authorities, and any lienholders before listing the property.
• Keep careful records of all notices sent, claims received, and payments made — the personal representative must account for estate funds.
• Consider an escrow holdback or court-approved sale if a creditor claim might still surface after closing.
• Contact the Delaware Register of Wills for procedural forms, filing requirements, and local guidance: https://courts.delaware.gov/register-of-wills/.
• Ask the title company whether it requires the creditor claim period to expire or a court order to insure title and close the sale.
• If the estate includes tax issues or a suspected tax lien, contact the Delaware Division of Revenue: https://revenue.delaware.gov/.
• When creditors dispute a claim, get legal help early — litigation can delay a sale and increase costs.

How a Delaware attorney can help

A Delaware probate attorney can confirm whether the personal representative has the authority to sell the home, prepare and file required notices, respond to creditor claims, negotiate payoffs, obtain court orders if needed, and coordinate with title companies and lenders to clear title. If you expect contested claims or complex liens, legal help can prevent delays and reduce personal liability for the personal representative.