What Happens if Someone Dies During Ongoing Bankruptcy Case?
Life is very unpredictable; no one really knows what is stored in the future. Though bankruptcy is rather a fast process, sometimes debtors die during an ongoing case. Even if you are not directly related to a bankruptcy case, this is an intriguing question - what happens if a debtor dies during an ongoing bankruptcy case? So let us answer this question step-by-step. How does the death of a debtor affect debt? Does it vanish? When someone dies, the debt doesn't automatically go off or vanish. The creditors try to meet the debt amount by going after the deceased's property even if it was not kept mortgage. And if the debtor had an ongoing bankruptcy case, proceedings will depend on the type of bankruptcy - Chapter 7 or Chapter 13. How does death affect the family members of the deceased? If a family member co-signed on loan with the deceased, then s/he would be liable for the rest of that loan. This means debts are not passed on to the family members unless it was a joint debt...