It is my understanding in a Massachusetts insolvent estate probate court proceeding, the probate court follows the respective Massachusetts law and required procedure independent of any action taken by an heir of the insolvent estate.
The applicable Massachusetts law follows:
General Laws of Massachusetts - Chapter 198 Insolvent Estates of Deceased Persons. - Section 1 Order of payment of debts
Section 1. If the estate of a person deceased is insufficient to pay all his debts, it shall, after discharging the necessary expenses of his funeral and last sickness and the charges of administration, be applied to the payment of his debts, which shall include equitable liabilities, in the following order:
First, Debts entitled to a preference under the laws of the United States.
Second, Public rates, taxes, child support arrears and excise duties.
Third, debts due to the division of medical assistance for estates of individuals dying on or after July first, nineteen hundred and ninety-two, regardless of when the assistance was actually provided.
Fourth, wages or compensation, to an amount not exceeding one hundred dollars, due to a clerk, servant or operative for labor performed within one year last preceding the death of such deceased person or for such labor so performed for the recovery of payment for which a judgment has been rendered.
Fifth, debts, to an amount not exceeding one hundred dollars, for necessaries furnished to such person or his family within the six months last preceding his death, or for such necessaries so furnished for the recovery of payment for which a judgment has been rendered.
Sixth, debts due to all other persons.
If there is not enough to pay all the debts of any class, the creditors of that class shall be paid ratably upon their respective debts; and no payment shall be made to creditors of any class until all those of the preceding class or classes, of whose claims the executor or administrator has notice, have been fully paid.
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Payment on creditors' claims is determined by the personal representative. Heirs do not have an opportunity to object to payment of a creditor, because no court order is required in order to pay creditors. The heirs have an opportunity to object to the appointment of the personal representative, and, if the personal representative seeks formal court approval of his or her account, the heirs have an opportunity to object to the account as a whole. But, think about it, if no creditor could be paid until everyone had a chance to object, the process would be even longer than it is!