WHAT HAPPENS IF MY SPOUSE DIES DURING BANKRUPTCY? If a couple files a joint bankruptcy and one of them dies, the Bankruptcy Code states that the bankruptcy case does not automatically end. Instead, the bankruptcy case continues with assets being liquidated as allowed by law and debts being discharged according to the law. If the assets of the deceased spouse will remain with the bankruptcy estate and the case will continue. If the deceased spouse was the main breadwinner and his death reduced household income, the case may convert from a Chapter 13 bankruptcy to a Chapter 7 bankruptcy .
If the couple did not have their meeting of the creditors, then the surviving spouse will be allowed to attend the meeting of the creditors and speak on behalf of the deceased debtor’s financial condition.
If the deceased debtor was married but the surviving spouse was NOT part of the bankruptcy filing, the bankruptcy case will still continue. Also, the surviving but non-filing spouse can still speak on behalf of the deceased debtor’s financial condition.
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