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Death of a bankrupt

What happens if a person dies during bankruptcy proceedings (i.e. before they are discharged)?

Posted from: Ontario

One Response to “Death of a bankrupt”

A licensed trustee said...

It literally depends on how far they were thorugh the process before they died and whether or not their trustee wants to complete the file. For example, if the deceased had completed their 2 counselling sessions and most of their other duties most trustees will simply complete the file and grant the deceased an automatic discharge. If the bankruptcy had just started and most of the duties haven’t been performed then the deceased will not be discharged unless the estate’s executor steps up and compeltes the duties.
Presumably the deceased’s executor shoold contact the trustee that was handling the bankruptcy to discuss thier options and then decide what makes the most sense.