Question Hypothetical Question - suicide during bk

[EmptyBottle]

Say both spouses are in process of Ch 7 bankruptcy and one commits suicide during the process - before 341 or before discharge... or even after discharge. How does that, aside from the obvious emotional issues, work against the surviving spouse? Is it discharged because of the suicide any earlier? Is it not discharged if there was no 341? The life insurance wouldn't cover the outstanding debts but would trustee take that from surviving spouse?

All hypothetical of course - just asking questions.....

Also - since the hypothetical question takes place in PA, the house is protected because of tenants in entirety... but if one is dead - wouldn't that void that and make the bankruptcy null and void and the house would be gone?

[justbroke]

I saw a case like that and the case continued to be administered. It does not stop the process, even if it was a single-filer and the sole-filer died.

The Bankruptcy Estate is an entity all onto itself, with an administrator (Trustee) already appointed.

I won't provide any other details because this is a really morbid question. If you are having issues, please consult your doctor. Many people go through depression before and during bankruptcy. I say this whether or not you're contemplating such a selfish thing to do to your loved ones... so maybe I can save one person from even thinking about this as a way out. I have had two close friends do this, and it sucks for those of us who have to clean up after them.

[tigergem]

Actually, I found that my bankruptcy fixed whatever depression I may have been having over my debts. Simply, because... I did something definitive and I handled it. (The debt I mean.) It's like a breath of sheer relief. Of course, some parts of the process did nothing whatsoever to help my anxiety levels, and there is more of that yet to come... but seriously... no one should let a bankruptcy drive them to such extreme measures. It's really not that bad.

[EmptyBottle]

Thanks for the responses although none really answered my questions. No the BK isn't even an issue in the grand scheme of things. One spouse is just wondering if the event occurs before it's discharged what ramifications are there.

And there would be no one to have to pick up the pieces so to speak. I wasn't looking for anything other than what if's............ if BK is the biggest problem in someone's life yippy for them. But in this case, it's not, hence my questions.

[JEM]

Thanks for the responses although none really answered my questions. No the BK isn't even an issue in the grand scheme of things. One spouse is just wondering if the event occurs before it's discharged what ramifications are there.

And there would be no one to have to pick up the pieces so to speak. I wasn't looking for anything other than what if's............ if BK is the biggest problem in someone's life yippy for them. But in this case, it's not, hence my questions.

I think maybe talking with a medical professional would help.

Please, please talk to someone if you are feeling like you don't have any other way out. Please.

[EmptyBottle]

[/B]

I think maybe talking with a medical professional would help.

Please, please talk to someone if you are feeling like you don't have any other way out. Please.

Thanks for medical professionals aren't helpful.

I'm just looking for anyone who has been in this situation with a pending bankruptcy either themself or spouse s/o. I'm not looking for sympathy, 800 help numbers or anything. I just was hoping to find some rational facts.

[JEM]

i

Thanks for medical professionals aren't helpful.

I'm just looking for anyone who has been in this situation with a pending bankruptcy either themself or spouse s/o. I'm not looking for sympathy, 800 help numbers or anything. I just was hoping to find some rational facts.

I don't think there are any "rational" facts because what is being suggested.....isn't rational.

[EmptyBottle]

Thanks for the help.

[BKOnce]

I wonder what kind of bottle you are tempting now -- Vodka or Med/Prescriptions??

[jdcat]

EmptyBottle- I did hear of a case where a spouse died just hours before their petition was filed and the trustee did take the life insurance proceeds to pay creditors. I can't remember what state that was or when it was, it was just something I bumped into at one point during my bk research and I didn't pay close attention.

I don't know the answers to your other questions.

[Mi Bankruptcy]

EmptyBottle- I did hear of a case where a spouse died just hours before their petition was filed and the trustee did take the life insurance proceeds to pay creditors. I can't remember what state that was or when it was, it was just something I bumped into at one point during my bk research and I didn't pay close attention.

I don't know the answers to your other questions.

I was thinking the same thing.. That would be crappy.. do yourself in and the let the surviving spouse deal with all the crap

[HHM]

To answer the question about the BK aspect of this thread,

It depends. A judge may grant a dismissal if one is requested if the event occurs before the 341 meeting; but conceivable the 341 could still take place with just the surviving spouse, so it is 50/50 whether you could get the case dismissed. There is no provision in the code or rules to dismiss case based solely on the death of the debtor. If the event happens after the 341, the case would probably proceed as normal and there would be an eventual discharge. If there were non-exempt assets, they would be liquidated to pay creditors, etc.
This blog explains it breifly.

http://askmethner.com/death-and-bankruptcy-what-happens-if-the-debtor-dies-during-bankruptcy/

The bankruptcy rule in issue is BK Rule of Procedure 1016.

A side note: many life insurance policies DO NOT pay out upon a suicide.

If by some reason there is a life insurance pay out, then the BK estate (trustee) would get it, pay as much as he can to unsecured creditors and if there was any left over, the surviving spouse would get the balance.

[HRx]

Seek professional medical/mental health help NOW! Bankruptcy is a SURVIVABLE experience! Remember, nothing in life is easy. Get help.

[EmptyBottle]

The Bankruptcy doesn't have anything to do with the issues at hand - other than how they will affect the spouse. If you wanna be nosy, this has been planned so that the spouses wouldn't be saddled with my debts - so it's not like the BK is the root of all evil. There are other issues in life besides problems with money.

Thank you HHM, and just broke, that gave me something to go on and find more info for myself - I was stuck in google-land and going in circles and wasn't getting anywhere. I must have kept wording my google search wrong or something. Thank you for the help.

And thank you for those that are saying 'get help'. Been there, done that, for over 20 years..... this isn't a fixable situation. All I want to do now is make sure my spouse isn't financially screwed through this. He knows I'm wacko.

[momofthree]

Read thru your life insurance policy carefully. Many policies won't pay out in the case of suicide. Our policy DOES pay, but only after the policy has been in effect without change for a minimum of 2 years. So, for example, when we increased our policy limit, the 2-year minimum began again.