ABSTRACT
With the abolition of imprisonment for debt creditors' recovery rights have been focused upon the estate rather than the person of the bankrupt. The function of the law must therefore be to arrive at an equitable balance between competing interests and legitimate expectations in situations of conflict on bankruptcy. Family considerations can come to the fore in a number of bankruptcies and raise delicate legal issues. These considerations are particularly sensitive where the bankrupt is deceased and the family is left to face the consequences of unpaid debt. A commercial contract will often contain a provision that the advent of bankruptcy will permit the other party to terminate the contract. A surety or guarantor who has committed itself to meet the financial obligation of a debtor in the event of default clearly has a legitimate interest in ensuring that its rights and obligations are properly addressed by bankruptcy law.
