1. If a obligationor dies during bankruptcy, the case does not automatically end. Remember, those money owings are still owed and creditors could come after assets of the deceased debitor without a bankruptcy discharge. For example, if the balanceor owned property, assets or cash, they could go after those assets with the approval of the court. Only the automatic stay of bankruptcy prevents creditors from pursuing a balance dueor (alive or dead) for disbursement.

2. If a obligationor dies during Chapter 7 bankruptcy and before they have attended the First Meeting of Creditors, someone else can testify on behalf of the deceased obligationor. If no one testifies on behalf of the deceased debitor during Chapter 7 bankruptcy, the case may be dismissed. A bankruptcy dismissal could mean that those arrearss are still owed.

3. In the case of a Chapter 13 bankruptcy, the court will determine if the bankruptcy regivement plan can be completed without the deceased money owingor. The bankruptcy court may decide to convert the Chapter 13 bankruptcy case into a Chapter 7 bankruptcy or to dismiss the case.

4. If the bankruptcy case is dismissed, the deceased debtor’s spouse may be pursued by creditors for disbursement, even if they are not legally entitled to it. There have been many cases in which creditors attempt to exploit the grief of family members to secure compensatement for the debts of the deceased. If you are the spouse of a deceased Chapter 13 bankruptcy debtor, you may want to request a “hardship discharg e” of your spouse’s balance. That way, creditors will not be able to harass you for reinbursement.

 

If a balanceor dies during bankruptcy, the case does not automatically end. Remember, those obligations are still owed and creditors could come after assets of the deceased balanceor without a bankruptcy discharge. For example, if the liabilityor owned property, assets or cash, they could go after those assets with the approval of the court. Only the automatic stay of bankruptcy prevents creditors from pursuing a balanceor (alive or dead) for givement.

Allmand & Lee are bankruptcy lawyers in Dallas, TX who specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. For more information please visit us at http://www.allmandandlee.com/

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