Legal Question in Bankruptcy in Nevada
Bankruptsy and death, who's responsible now?
Ron had to declare bankruptsy. He was told to pay $100.00/mo for three years as his part. Less than a year into this arrangement, he died. Now 7 months later, he is getting mail saying that his court case was dismissed (I assume because he died) and now he owes all the money plus interest immediately. But he is dead. Is his spouse now responsible? Will she have to declare bankruptsy now because of his debts? Thank you for your time!
1 Answer from Attorneys
Re: Bankruptsy and death, who's responsible now?
Two things appear to be in question here. The first issue is whether Ron's estate will be probated. If there is a need to probate his estate, then the creditors will have an opportunity to file claims against that estate. Your question doesn't say enough for me to tell if there is going to be a probate.
The other issue is whether the surviving spouse is liable for the debts directly. In Minnesota there is a statute which says a spouse is liable for the "necessities of life" of the other spouse. I have always found it hard to be sure exactly what that means, but my understanding is that it primarily means medical expenses. I expect the surviving spouse would be directly liable for medical bills but not much else.
If I were the surviving spouse I would want to look for a strategy that would keep the estate out of probate. I would also not pay anything until the creditors were coming after me directly - no point here in voluntarily paying anything unitl one is forced to. Without a good collections lawyer the medical creditors might not know they even have a claim against the spouse.
Good luck.
This response is for general information purposes only and does not create an attorney-client relationship. You are advised to consult the attorney of your choice concerning the details of your case.
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