Legal Question in Bankruptcy in Wisconsin

Bankruptcy For Deceased Person

Deceased persons are not entitled to discharge in bankruptcy. Unless they have a surviving spouse or dependants, the decedent's estate may not therefore achieve any benefit from the bankruptcy under any chapter, since a probate case will accomplish the same goals of liquidation of assets, payment of debts (pro rata if there is insufficient money to go around), and distribution of whatever is left over to the heirs. However, if the trustee already possesses and is administering assets, dismissing the bankruptcy before he has finished his duties may prove impossible. In this scenario, there may be advantages in converting a chapter 13 case to chapter 7. I would recommend that you consult with an experienced bankruptcy attorney as soon as possible. There may be advantages to commencing a probate estate and having yourself (or other appropriate person) appointed as the legal representative of the estate, which is a prerequisite to exercising any legal authority for a deceased person. There are limited situations when the bankruptcy case could still prove advantageous to the probate estate, for example, in order to retrieve assets paid out to the advantage of one creditor over others on the eve of bankruptcy (known as "preferences"). Likewise, there can be advantages for surviving spouses in continuing the bankruptcy in order to free up more assets for the spouse or other dependant. My comments are not intended as legal advice unless you subsequently retain me to re-examine your issues.