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Britiney · Sep 14, 2006, 04:15 AM

My mother died last month and my siblings and I just found out she had filed a chapter 13. She keep her real estate property and was making payments to the attorny or trustee. Do we have to continue her bankruptcy agreement in order to protect her property.

ScottGem · Sep 14, 2006, 05:26 AM

You need to check with the attorney or trustee. Normally, when a person dies, creditors have a claim on the estate.

ScottGem · Sep 14, 2006, 03:34 PM

Originally Posted by Britiney

Since this was a Chapter 13 my mother was making payments to the Trustee. During her illness she had gotten behind. My siblings and I have been trying to catch up her bills. We have made payments to the Trustee. If we advise her Trustee that she is decease is she no longer protected under her Bankruptcy? Can the creditors now request all of the back payments before the Bankruptcy?

I really don't know the answers to those questions. I know you should not be responsible for your mother's debts. And you should stop paying immediately. By making payments you might be construed as taking responsibility.

Your mom's estate is the only entity responsible for her debts. If the estate is not enough to cover it, then the creditors are out of luck. But the atty who handled her bankruptcy can better advise what the estate will be responsible for.

Fr_Chuck · Sep 14, 2006, 05:16 PM

Ok, first "you" don't do anything, all of her estate ( property and money) becomes part of her estate, no one else is liable for any of her debts, except for what money is in the estate.

Next a dead person can not be declared bankrupt, so even after paying, there can be no final decree because she is dead.

What happens is contact the trustee for the bankruptcy court.

Normally the chapter 13 will be withdrawn, you take all of the proceeds form the sell of any property and belongings and pay off as many people as you can. ( according to the rules of your state as to who gets paid first)

If there is any money left, the heirs split it, if there is not enouigh money left you merely notify them that the estate is out of money and they will not be paid.

*** always contact a probate attorney in your state.