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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 debtorโ€™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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