Depending on the size of the debt, fully paying a debt off through a compulsory execution order can take a long time. If the debtor’s salary is small or there are few assets available to pay the debt, the monthly payments may be relatively small. Therefore, there is a risk that the creditor may pass away, either from an accident, sickness or old age, before the debt can be completely paid. However, even in these cases, the debtor is not relieved of his or her duty to pay.
The bankruptcy estate is composed of the assets held by the applicant at the time of filing for bankruptcy. However, there are some exceptions to what can be included in the estate. When a natural person goes through bankruptcy, the court will limit the estate so that a certain range of assets critical to protecting the debtor’s life cannot be included.
Sometimes, a debtor will still be in the process of performing a contract when he or she files for bankruptcy. If the contract is still at a stage where both the debtor and the contracting party have not finished their performance, the liquidator often has the choice between continuing the contract or canceling it completely. If performance on the contract would result in further assets for the debtor to distribute to creditors, it is in court’s interest to allow the debtor to continue performance of the contract.