Rejection of Claim Law and Legal Definition
Rejection of claim is a term used in probate law to refer to the denial of approval for payment of a debt of the deceased made by the executor or administrator of the estate. The executor or administrator must file a written rejection of the claim with the court, and a judge shall approve or disapprove the rejection if the claimant protests. If a claim is not acted upon it may be presumed to be approved in most states.
Rejection of claims involving a variety of matters may be made by agencies or individuals, and a lawsuit may be brought to contest the rejection if all administrative procedures are attempted first.
The following is an example of a state statute governing rejections of claims in receiverships:
"All parties having claims against the bank shall present their claims substantiated by legal proof to the receiver within one hundred eighty (180) days after the bank closing. The receiver shall cause notice of the claims procedure prescribed by this section to be published once a week for twelve (12) consecutive weeks in a local newspaper of general circulation and to be mailed to each person whose name appears as a creditor upon books of the bank, at his last address of record. The receiver shall notify in writing any claimant whose claim has been rejected within one hundred eighty (180) days following receipt of his claim. Notice shall be effective when mailed. Any claimant whose claim has been rejected by the receiver may petition the receivership court for a hearing on his claim within sixty (60) days from the date his claim is rejected."
