Hardship Discharge for Deceased Bankruptcy Debtor
If a debtor passes away while in active Chapter 13 Bankruptcy then a family member or person appointed durable power of attorney can contact the attorney to request a hardship discharge. A motion must be filed with the court and a notarized affidavit by family representative requesting reason for the hardship discharge request.
Obviously any debts, such as home or auto, that still have lien against them will need to be sold, transferred as requested in Will or Trust, or surrendered. In some cases, a plan modification may be filed to list such treatments to the secured claims and allow case to discharge with no further payments due.
You should let you Executor or Trustee of Will know that you are in active bankruptcy so they are aware to contact our office in the event of death, serious illness or other valid reason.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
