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What if a Chapter 7 Debtor Dies?

What if a Chapter 7 Debtor Dies?

This may seem like a strange question, but it does happen. Several issues are raised when an individual dies during the middle of his or her bankruptcy case. Does the debtor’s estate receive the benefit of having the debts discharged? Is the bankruptcy case moot? Bankruptcy law does not outline a specific procedure that must be followed by a debtor passes away.

There are several actions that may be taken by the court, such as:

  • Take steps 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. Many Chapter 7 cases can continue the same as if the debtor was still alive.

If you have questions regarding Chapter 7 bankruptcy or you want to learn more about how it can benefit you, schedule a consultation with The Koplen Law Firm today.

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