Morbid but had to ask: What if u pass away during your Chapter 13

[klandsb]

I am single with 2 kids in there 20's... I have a will made up but was wondering if by chance something terrible happans and I am in a Chapter 13 what happans to the debt ??? I mean really, people kill over and are in auto accidents everyday... I know I cant be a the only person who has thought of this... My kids are aware that I filed and I plan on putting a copy of it in with my will along with life insurance policy ect.....

[Flamingo]

Your chapter 13 plan would become part of the debts of your estate and your executor or exectrix would be responsible for ensuring payment, handling and closing of your Plan from your estate funds before your estate could be closed.

[lrprn]

...if by chance something terrible happans and I am in a Chapter 13 what happans to the debt ???

If the debtor dies during an active Ch 13 case, the current bk law allows for three things - (1) the chapter 13 case could be dismissed (hardship discharge); (2) it can be continued by an interested party; or (3) it can be converted to a chapter 7 case (http://www.************************/...nkruptcy-dies/)

It's the state the debtor lived in and that state's inheritance laws along with the nature of the debts involved that determines which option is the best to use in each individual situation. Dismissal is the most common.

Here's an online account of what happened when a Ch 13 debtor in an active plan living in Kansas died - http://www.************************/...3-debtor-dies/ .

[klandsb]

Thanks guys/girls. I think about the caziest stuff sometimes but want to be prepared /or know that my kids wont have to continue the plan for my debts. So the money that was already paid into the plan would be distributed amounst the creditors ??

[joek]

think positive, you need to be around so you can enjoy the debt free life after bk lol