28 Dec Death During Chapter 7 Bankruptcy
What happens if a debtor in chapter 7 bankruptcy dies during the administration of the case? The simple answer is a deceased debtor can receive a discharge of debt, provided the debtor would qualify for a discharge during one’s lifetime. In other words, the case can proceed to completion and you can go to your grave debt free.
The technical answer, of interest to lawyers and judges, is found in the legislative history behind section 727, which provides that an individual debtor includes a deceased individual. Further support is found in Bankruptcy Rule 1016, which provides that death of the debtor shall not stop the case. Thus, a deceased debtor can receive a discharge such that the remaining probate estate [think heirs] is not responsible for payment of the decedent’s debts.
Andy Miofsky, Esq.
Latest posts by Andy Miofsky, Esq. (see all)
- Social Security Income: Invisible Money Bankruptcy Cannot Touch. - December 19, 2016
- What can and cannot be included on a credit report? - December 21, 2015
- Use Exemptions to Protect Your Property in Bankruptcy - January 20, 2014
- A profile of the typical person who files bankruptcy - January 13, 2014
- Amended Bankruptcy Rule 1007 changes Form 23 debtor education filing requirement. - January 7, 2014