Bankruptcy can be complex and many questions often arise during cases. One complication occurs when a debtor dies during the middle of his/her bankruptcy case. Will the debtor’s estate receive the benefit of having the debts discharged? Does the death of the debtor make the case moot?
There is not a clear procedure that must be followed under bankruptcy law when a debtor passes away. There are several actions that may be taken by the court, such as:
- Continue to administer the debtor’s estate
- Appoint a guardian for the estate
- Determine if the personal representative from the debtor’s probate estate wants to continue the bankruptcy proceeding
It may be possible for the death of a Chapter 7 debtor to have no effect on the filing. Chapter 7 cases can continue the same as if the debtor never died. However, in a Chapter 13 case, the death of the debtor ends the monthly payments needed to fund the Chapter 13 plan. Without payments being made to the plan (and to the creditors), the case will be dismissed.
If you have questions about bankruptcy, we can help. Call us today to schedule an appointment!
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handles bankruptcy matters for the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.