Question: What happens if someone is in the middle of their bankruptcy and have not been discharged and they die?? Can they still be discharged?? How do the creditors or trustees get paid??
Answer: The answer depends on how far the bankruptcy has proceeded at the time of death. If the bankrupt has fulfilled all of their duties, the bankruptcy may proceed to a normal discharge. If the bankrupt has not completed their duties, and they cannot be completed by the bankrupt’s estate (such as through life insurance proceeds), the bankrupt will not be discharged, which is in most cases not an issue, since after death it is not likely the creditors will be pursuing the bankrupt.
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