Beautiful day, but a black cloud topic

[Bobby'sGirl]

Started out in a great mood today, ran up to store and came within an INCH literally of being broadsided by an 18 wheeler barrelling through a red light. My instincts cut in before heading fully into the intersection when it turned green and my van rocked with the force of his passing in front of me.

It made me wonder: what happens to my BK once it is filed and if I were to die. At what stage prior to discharge and closing would it be "no go"...

Would my small life insurance policy and equity in house go to the court? To which creditors? Does ANY of it go to my kids? Or can the estate continue to discharge.

I know: questions for my lawyer, but this is a Saturday, and I wondered if any one out there has seen a FAQ or a link to a situation like this.

Something to ponder.

[razorguns]

If u die - the ssn is retired, the case is dismissed, and creditors can do nothing. Unless they realize you have a massive estate, and they have huge bills and can afford expensive lawyers to go after your estate.

Which is a tough job - cuz by the time they file, family members have spread out the estate all across the family making collection impossible. Only if the deceased had a house would it make sense.

Then again - there's no legal right for them to even be notified the person is dead. For all they know - they can send mail notices forever.

r

[bezoar]

You might find some answers in this LENGTHY article:

http://findarticles.com/p/articles/m..._n8889118/pg_4

I seem to remember death benefits (life ins. proceeds) paid to others was exempt, but that may be a state by state thing.

Interesting article, but I didn't make it through the whole thing - my eyes were starting to bleed. ;)

[SinkingFast]

I had wondered the same thing, BG.

And that was a great link, Bezoar.

But I still don't know,.............. If I die, who gets my life insurance??

I don't mind if the Court takes whatever's left and distributes that to Creditors, but will my family at least be allowed to bury me out of the life insurance??? Heavens knows, they don't have the money on hand to take care of that type of expense.

[Bobby'sGirl]

Thanks, everyone

I'm doing my best to hang around for another 40 years...would love to be in the tide of boomers to break 100

Never know these days...the truck this am made me think.

Found this in the link Bezoar provided regarding this isssue:
Rule 1016 of bankruptcy code
The rule makes clear that the death of a Chapter 7 debtor does not affect the administration of the bankruptcy estate. The subsequent commencement of probate proceedings for the Chapter 7 debtor does not affect the bankruptcy case because only the debtor's property that is exempt from bankruptcy administration and property that the debtor acquired postpetition will be available for probate.43 In certain instances, the continuing administration of the decedent's bankruptcy case may conclude with the grant of a discharge enforceable by the probate estate.

Notably, Rule 10 16 does not automatically dismiss a Chapter 11 or Chapter 13 case upon the death of the debtor. Few cases deal with dismissals pursuant to Rule 1016. Nevertheless, the advisory committee note to Rule 10 16 in the 1983 amendments provides that "ln a chapter 11 reorganization case or chapter 13 individual's debt adjustment case, the likelihood is that the case will be dismissed."