Bankruptcy on a deceased mother?

by **orlondo100** » Fri Nov 25, 2011 4:29 am

i want to know If i could file bankruptcy for my mother who has debt but has passed away this year. she has NO estate as this was an unexpected death, there was no life insurance and I sure can not pay all her debts and mine to. I am contemplating on filing for myself as my debt has skyrocketed in the last few year. we live in Indiana and was wondering what the laws say about it

by **colfre** » Fri Nov 25, 2011 4:37 am

No, it is not possible for a deceased person to be a debtor under 11 USC (the Federal Bankruptcy Code). Bankruptcy differs from taxes this way, in that a deceased person can and sometimes must file an income tax return. But when a person dies, they are no longer eligible to file bankrupcy (nor can their estate do it for them).

by **ring** » Fri Nov 25, 2011 4:52 am

There is no need to file bankruptcy for a deceased person. If there is no estate, and the debt is unsecured, and hers alone, then it died with her. If it is secured debt, such as a mortgage or a car loan, then the creditor can have the house or the car. But you are in no way obligated to pay off the loans. That is unless you signed for the loans along with your mother. In that case you would need to file bankruptcy yourself, because the debts are now yours.

by **choviohoya** » Fri Nov 25, 2011 4:58 am

I don't think you actually have to file bk for your deceased mother.
You pay the bills you can and the rest just are defaulted on. Yes, her credit score will suffer but I don't think she will be using it anymore. Just send a letter to her creditors with a copy of the death certificate and that should take care of the issue.

Unless you are a cosigner, you are not responsible for her debt.

by **stein74** » Fri Nov 25, 2011 5:06 am

You are not responsible for her debts unless you were a co-borrower or co-signer.
Don't bother filing bankruptcy.

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