This chapter provides guidance to the official receiver where he/she is dealing with a personal insolvency where the debtor has died.
The debts a person owes when he/she dies are not discharged on death (save for any specific provision, such as an insurance policy) and any debts remain to be paid by his/her estate.
So far as the administration of the estates of a debtor who dies before the presentation of an bankruptcy petition is concerned, the legislation [note 1] operates to extend and modify the provisions of the Act to the administration, in bankruptcy, of the estate of the deceased person. The order will be an insolvency administration order and not a bankruptcy order. Similarly, a person subject to such an order is known as a ‘deceased debtor, and not a bankrupt.
For deceased bankrupts (that is, those debtors who die after the presentation of a bankruptcy petition), the legislation [note 2] provides that, unless the court orders otherwise, matters shall proceed as if the debtor were still alive, subject to certain special provisions on which there is guidance in Part 2.
The legislation also contains provisions relating to other forms of personal insolvency, but these are not covered in this Chapter except for brief reference to IVAs in paragraph 54.7. Guidance on IVAs and deceased insolvents can be found in paragraph 57.32.
The chapter is divided into four Parts, as follows:
Part 1 – Debtor dying prior to the presentation of a bankruptcy petition (paragraphs 54.3 to 54.37)
Part 2 – Debtor dying after a bankruptcy petition is presented (paragraphs 54.38 to 54.54)
Part 3 – The personal representative (paragraphs 54.55 to 54.60)
Part 4 – Dealing with property of a deceased individual (paragraphs 54.61 to 54.72)
This Chapter contains the following abbreviation:
PIQ – preliminary information questionnaire
[On to Part 1 – Debtor dying prior to the presentation of a bankruptcy petition]