Deceased Insolvents
September 2005

Introduction

1. What are the provisions for dealing with a deceased debtor?

It is a common misconception that when a person dies, his/her debts are automatically discharged. Debts are not discharged on death unless specific provision has been made for them to be discharged, e.g. by an insurance policy. All debts that are not provided for must be met from the assets of the deceased debtor. Where the assets are insufficient to meet all the debts, the estate is insolvent.

Where a person dies after a bankruptcy petition is presented against him/her, the matter continues as a normal bankruptcy with some amendments.

Where a person dies before a bankruptcy petition is presented, a petition for an insolvency administration order can be presented under the Administration of Insolvent Estates of Deceased Persons Order 1986 (AIEDPO86). The administration of the insolvent estate is dealt with under the provisions of the AIEDPO86, which applies and amends certain provisions of the Insolvency Act 1986.
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https://www.insolvencydirect.bis.gov.uk/casehelpmanual/D/Dec...

as often, there are prederminted forms that must be used:

http://www.legislation.gov.uk/uksi/2002/1309/made