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What happens if I die or my spouse dies during Bankruptcy?
The short answer to what will happen if you die during bankruptcy is that nothing will happen to you. Your spouse filed a Consumer Proposal to settle his obligations to his creditors. Upon your spouse’s death, the surviving spouse has no obligation to continue making the monthly payment on the proposal, although, the surviving spouse may voluntarily agree to do so. In the majority of cases, the surviving spouse will decide not to continue to make the monthly payments and simply allows the Consumer Proposal to go into default. The proposal will be annulled once the proposal falls 3 payments in arrears. The only obligation of the surviving spouse is for joint debts. The liability for joint debts should be discussed with your trustee at the time the original papers are signed to start the Consumer Proposal.
Upon the death of your spouse, please forward a copy of the death certificate that you receive from the funeral home to your trustee, who is acting in the capacity of the Administrator of the Proposal.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
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