In a typical probate administration, the personal representative named in the deceased person’s will must pay off any valid debts presented to the estate. What if the decedent was already in bankruptcy at the time of his or her death? What happens to the bankruptcy case?
Bankruptcy and probate are actually similar legal procedures. Both require a third party to take possession of a person’s assets. In bankruptcy that person is a court-appointed trustee, while in probate it is the personal representative. A bankruptcy trustee does not take all of a debtor’s assets, however, only those that are not specifically exempt from bankruptcy or creditor judgments. Those assets remain with the debtor and pass to his probate estate–and thus the personal representative–upon death.
Chapter 7 vs. Chapter 13