What Happens to a Bankruptcy Case When a Debtor Dies

[chewwl88]

Do anyone know what Happens to a Bankruptcy Case When a Debtor Dies?
Does the estate will affect? Spouse affect?

Anyone here know about this issue

[katbh]

It depend on if declared bankrupt before death etc.
But basically a bankrupt's debts form part of the assets and liabilities of the estate. The debts need to be satisfied, if possible, from the estate first before any gifts, bequeaths etc can be distributed.
You will need a probate lawyer to help the estate through it.

[chewwl88]

Thanks for your reply.

Debtor was die after declare bankrupt. Now applied to help the (Debtor) decease to discharge from OA.

Hopefully will not affected estate. It will affected spouse also?

[FaeLLe]

Debts will get passed down as liabilities to the spouse and can be claimed from the estate / inheritance they have passed on after their death.