Collections coming after estate, can't close probate. Charges were not suthorized. Is hearing only alternative to close probate?

It looks like your attorney has little choice here, if the creditor is insistent even though the facts are clear. If this is a clear case of fraud you may want your attorney to demand that they drop the matter or you will sue them for costs. However, you must have him check the laws in his state to see if this is even possible.
The fee quoted does not sound out of line for a hearing as a general matter.

Hope this helps.

LEGAL DISCLAIMER
Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.
Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.