Debt at Death do you part?

Question: Can bankruptcy be used lawfully to eleviate financial burden on your family if you were in danger of or close to dying?

Answer: Unless family members have co-signed for your debts, they are not responsible for your debts. If a person dies, the executor of their estate would liquidate their assets and use the funds to pay the creditors. Any remaining funds would be distributed to the heirs. If a living person goes bankrupt, a trustee would sell any non-exempt assets, and the proceeds would go to the creditors, so a bankruptcy in most cases does not protect family members.

We suggest you contact a trustee for further information.