Legal Question in Credit and Debt Law in New Jersey

Re: debt of a deceased person

Not as such. A bankrupt estate is handled in the same general way as any other bankrupcy. Debts are paid in the order of their legal priority. When the money is gone, the remaining creditors are disappointed.

The exception is where there is a surviving spouse or a surviving parent of a minor. In both of those cases, the survivor had a legal obligation to themselves pay for the care of the deceased. Therefore, the debt can also be characterized as the individual debt of the survivor. Such debts can sometime be negotiated.

See also: http://info.corbettlaw.net/lawguru.htm