bankruptcy
If a person dies in bankruptcy, do her assets go to her creditors or her heirs?
<p>Jane declares personal bankruptcy. She owes her creditors $1,000,000.</p>

<p>Before bankruptcy proceedings have begun, Jane dies. In her will, she leaves her entire estate to her daughter Sarah. Her estate is valued at $500,000. </p>

<p>Who gets the money — Sarah, or Jane's creditors? </p>

<p>In most cases - the deceased estate will pay secured creditors, unsecured creditors, then beneficiaries.</p>

<p>This would depend on any other entities that may have been created by the deceased in anticipation of this, but otherwise, Jane will get nothing.</p>
