What happens if an estate has creditors?

As part of the probate process, creditors are notified through a weekly newspaper.
In State X, creditors must file a claim for the amounts due within three months with the court. If the claim is approved by the executor, the bill is paid out of the estate. If the claim is rejected, creditors must sue for payment.
If there are insufficient funds to pay debts, states have statutes establishing who gets paid first. Executors most likely will commence selling property to pay off approved creditor claims. Any claims remaining are pro-rated.