If an insolvent debtor dies, the insolvency proceedings over his assets are converted into estate insolvency proceedings.
An application for commencement of estate insolvency proceedings can, however, also be filed by the heirs and the creditors of an over-indebted estate.
This restricts the liability of the heirs for the obligations of the estate to the estate assets. It also serves to properly satisfy the estate creditors and to secure the estate against creditors of the heirs.