Legal Question in Bankruptcy in New Jersey

Bankruptcy & Death

Eighteen months ago my 44 year old brother passed away. He was not married and had no children. He did not have a will. So it is my understanding that my mother inherits his estate. Before he died he had filed Chapter 13 Bankruptacy. His unsecured debts were being paid to a trustee at a monthly rate of $400 a month for 5 years. He was paying his mortgage seperately to another trustee. The attorney handling this for him had instructed my mother not to tell anyone (meaning the mortgage company or the trustee for the credit cards) that he had died and she has continued to pay his bills. But I feel now (she has finally told me about this) that this is wrong. I feel that she should be given the opportunity to assume his mortgage in her own name. What should happen when someone has declared Chapter 13 and then they die?

Thank you.


Asked on 2/18/05, 4:10 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Bankruptcy & Death

Those debts that remain during the administration of a chapter 13 plan are not extinguished by the death of the debtor. They remain debts of the estate and should be paid by the decedent's estate in the same priority as any other debt. When it is important, the death does not accelerate the required payments either. Most often, there will not be enough money to pay all of the debts.

As a practical matter, no one should feel obligated to administer the estate unless there will be something left. To tell exactly what to do with this estate, you should get together the Chapter 13 Plan, the record of payments (which the Trustee can provide) and a list of all the other debts and assets of the decedent's estate. Then, pick a lawyer and get a consultation. If cost is an issue, call your county Lawyer Referral Service. Many of these services will arrange a consultation for a very reasonable fee.

As to the advice given to your mother, I would be very cautious. You did not indicate that there was any benefit to your mother or any fraud involved. However, if your mother or the estate is securing a benefit from the creditors because the death has not been reported, there may be fraud. I would advise you to get a second opinion on that issue.

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Answered on 2/18/05, 7:09 pm


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