Did you know it's possible that when you die you may be leaving all of your outstanding debt to your children to pay? CNN has recently published an article describing all the different scenarios where a parent may pass and the result is the child is left to pay the parent’s outstanding debt.

Typically what happens is any outstanding debt is paid with assets of the deceased parent’s estate this means several things. If the parent has intended for the child to receive any sort of inheritance, that inheritance will first be reduced by the amount of outstanding debt and the parent’s name.

Filing for bankruptcy may be the solution. When you file for bankruptcy, many if not all of your assets are protected in most cases. This means that you can potentially file bankruptcy to wipe out all of your debt and then should the worst happened, your child will not be burdened with either a reduction in inheritance or in some cases be obligated to pay medical bills.

The laws concerning what assets you can protect during a bankruptcy are not necessarily simple. Therefore, you should always consult an experienced bankruptcy attorney to determine what assets you'll be able to protect and what assets may be subject to turn over to your bankruptcy trustee.

At The Law Offices of Keith D. Collier, we pride ourselves on remaining on the cutting-edge of all the new case law that comes out in favor of and against Debtors who need to file bankruptcy. Please contact us today for a free phone or in-office consultation.