In most cases, you can get rid of credit card debt in Chapter 7 bankruptcy. Learn what happens to your credit card debt in Chapter 13 bankruptcy. If you take out a cash advance prior to bankruptcy, you might not be able to discharge the debt. Learn more.
A novation is a trilateral agreement by which an existing contract is extinguished and a new contract brought into being in its place. Indeed, for an agreement to effect a valid novation the appropriate consideration is the discharge of the original debt in return for a promise to perform some obligation.
In the simplest terms it means the terms of the trust can no longer be modified or changed. Your father likely had a revocable living trust in which he would title the majority of his assets. While he was living he could make changes as necessary to the powers and provisions of the trust as it was ârevocableâ. Upon death those terms would be locked and âirrevocableâ. The trust is a separate entity from himself much like creating a corporation or llc and therefore continues to have a life when he passes.