My father died while filing for bankruptcy, what should I do? 16 Answers as of July 11, 2013

My father was in his late 60's but was still working and running his business that was barely profitable. He had taken out several loans on his house and the assets of his business worth more than they currently are. I haven't sought legal counsel or talked to his attorney yet, but I wanted to get some legal advice and know my options before I talk to my father's attorney. If I inherit his debt, do I have to file for bankruptcy?

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
You can't inherit someone's debts. If your father filed a bankruptcy case, the case can continue despite his death if that is the desire. You should consult with your father's bankruptcy attorney for more information.
Answer Applies to: California
Replied: 7/6/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
No. You cannot inherit debt.
Answer Applies to: California
Replied: 7/6/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You do not inherit his debt. Don't be afraid of his lawyer. Call him or her right away.
Answer Applies to: California
Replied: 7/5/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
You will not inherit his debt.yrock.
Answer Applies to: California
Replied: 7/11/2013
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
It depends on whether your father filed the bankruptcy case before he died. I am happy to discuss these and any other issues you have. Please call to schedule a free consultation.
Answer Applies to: Georgia
Replied: 7/5/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If someone dies the assets and debts will be distributed in a probate action. You do not inherit the debts per se.
    Answer Applies to: California
    Replied: 7/5/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    You will not inherit the debt unless it is a secured debt (like a mortgage) and you inherit the collateral to the debt.
    Answer Applies to: Arizona
    Replied: 7/4/2013
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You do not inherit debt. If your father's debt is more than his assets then there may be nothing left for you to inherit, but the creditors do not have the right to collect against your father's heirs. The worst that can happen is that the creditors take whatever assets your dad did have.
    Answer Applies to: Colorado
    Replied: 7/5/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    This is as much a probate question than a bankruptcy question. You do not "inherit" your father's debts. If he actually filed a bankruptcy petition, then his creditors are stayed from collecting the debts. If it was a Chapter 7, then he will receive a discharge of all but the secured debt, because the bankruptcy "speaks" as of the day of filing. If it was a chapter 13 bankruptcy, then the standing trustee will eventually file for dismissal for nonpayment. Then, if he had a living trust then the trust will have to deal with the debts. If he did not, then a probate should be started, and creditors have 4 months after receiving notice of the probate to file their claims in the estate, which if allowed will be paid out of the estate.
    Answer Applies to: California
    Replied: 7/5/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Debts are not inherited. You just can't receive any assets until all of the debts are paid. To the extent that there are debts, they would have to paid by the deceased person's estate. Depending on the size of the estate, there may not be enough assets to pay all debts. Depending on where he was in the bankruptcy, the debts may not exist. You should talk to his bankruptcy attorney to find out what the death did to the discharge of the debts if anything.
    Answer Applies to: California
    Replied: 7/5/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    If there is already a bankruptcy filed, meet with his bankruptcy lawyer to determine the status of the case and his debts and assets. If not, you don't inherit debts but debts do get paid before you inherit assets, so consult an estate/probate lawyer.
    Answer Applies to: Georgia
    Replied: 7/5/2011
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