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How is a bankruptcy case affected by the death of the debtor?

In a Chapter 7 bankruptcy case, the deceased debtor’s personal representative can act on the debtor’s behalf and obtain a discharge for the estate as long as there are no disputed claims that preclude this. In a Chapter 13 case, the case will be closed and it will be as if the debtor never filed so the claims will remain as potential claims against the estate. This is because Chapter 13 is designed for the debtor to repay creditors over time in accordance with a Plan approved by the bankruptcy court from funds earned by the debtor. Obviously, the debtor can no longer perform his obligations and so case will be dismissed.

Contact us now to inquire about your bankruptcy rights.

Baltimore Bankruptcy Attorney