If a debtor dies during bankruptcy, the bankruptcy case does not automatically end. Remember, those debts are still owed and creditors could come after assets of the deceased debtor without a bankruptcy discharge. For example, if the debtor owned property, assets or cash, they could go after those assets with the approval of the court. Only the automatic stay of …

Tags: Bankruptcy Chapter 13 chapter 7 Death

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… an article in the Star-Telegram, a widow is claiming that debt collectors hounded her husband to death with as many as nine harassing and illegal calls per day, causing stress that contributed to his fatal heart attack. She’s suing Green Tree Servicing for damages, claiming that their illegal collection practices that led to her husband’s heart failure on Dec. 4, 2005.

The article said:

“Her 57-year-old husband, Stanley, was already in poor health from a heart attack years …

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… is now deceased, would have received a discharge in life, then he will also receive a discharge in death. Or, on the other hand, creditors may liquidate the estate of the deceased estate to satisfy debts. But if the case is discharged the estate of the deceased cannot be seized and the heirs of the deceased will not be responsible for paying debts in probate court.

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Earlier this week we discussed the Erickson Chapter 11 bankruptcy filing; but an article in the Wall Street Journal has revealed a lot of the sordid details of what took place before the bankruptcy filing. Apparently Erickson felt forced into bankruptcy because of strong-arm tactics being used by their creditors that threatened the health and safety of the retirement …

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During a married couple’s joint bankruptcy , there’s always the possibility that a spouse may become incapacitated or die. The bankruptcy law states that if a debtor is incapacitated or dies, the bankruptcy case does not automatically end. If it is a Chapter 7 bankruptcy and the deceased or incapacitated spouse has not yet attended the First Meeting of Creditors, then someone can …

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… If you are familiar with the bankruptcy process then you understand that bankruptcy isn’t a death sentence for the companies.  It depends on the company’s situation, but most companies file for Chapter 11 bankruptcy.  Chapter 11 allows the company to remain operational while wiping out and restructuring debts.

 

Individuals faced with rough financial situations are also afforded the opportunity of bankruptcy.  If you are struggling financially, you should consider …

… pay off any delinquent balance over time.  Even if Dr. Murray is convicted of wrongdoing in the death of Michael Jackson, he will still have the right to file bankruptcy while imprisoned.  Whatever Dr. Murray decides to do about his financial affairs, he needs to seriously consider his bankruptcy options.

… may still lose the property (to foreclosure ) if the loan is not repaid after the debtor’s death or move.

Reverse mortgages do not offer as much money as some seniors hope and need to fund their retirement years.  These mortgages are usually only a fraction of what the equity in the house is truly worth.  Therefore any foreclosure that takes place after the death or move of the debtor will reap a significant profit for the lender.

Individuals who take out a reverse mortgage on …

… need a helping hand.  They may have filed bankruptcy because of a job loss, medical emergency, death of the family breadwinner or some other drastic change in their life that has caused them to have too much debt they can no longer pay.  Below are a couple of real life scenarios that often cause people to file bankruptcy:

A woman loses her husband unexpectedly.  He was the primary breadwinner, she worked a part-time and cared for two small children.  They are 32 and 36 …

… to repay all of your debts, depending on their opinions when considering bankruptcy could deal a death blow to your finances.

You are going to work with a debt settlement company to pay off your debts.  While there are some debt settlement companies who might be legitimate, many do not deliver on their promises. Creditors are not required to settle or reduce the amount of debt you owe.  Only bankruptcy can reduce or discharge debt.  And many creditors refuse to work with debt settlement …

… legislation caused untold damage to our economy. Mere liquidity problems nearly spelled the death knell for businesses. Our vintage 1909 Insolvency Law was simply not responsive to the 21st century needs of our financially distressed companies. It did not have Chapter 11-like provisions that could have resuscitated them back to life. In the process, many of our companies have suffered a perverted death,” said Sen. Edgardo Angara, one of the bill’s proponents.

After 100 years, the …

… for his personal benefit” the money from the estate of the client, Lucille Steinhardt. After her death, at age 101, none of her beneficiaries received any of those funds.

Moyler had initially been discharged from bankruptcy without having any funds to repay creditors, but a bankruptcy judge granted a motion by the United States to reopen the case. A hearing in the Newport News bankruptcy court is set for Feb. 19.

And while this attorney was not filing bankruptcy for clients, this …