Can a Bankruptcy Trustee Be Appointed for a Deceased Person's Estate in British Columbia?

This answer covers the law of British Columbia.

An estate can be dealt with under the federal Bankruptcy and Insolvency Act, but it is not automatic and it is not the usual route. The executor or administrator of an insolvent person's estate may, with the leave of the court, make an assignment of all the person's property for the general benefit of creditors, and it takes effect when filed with the official receiver.

A person is insolvent when they are not bankrupt, reside, carry on business or have property in Canada, have provable liabilities of one thousand dollars, and meet one of three tests: they cannot meet obligations as they come due, they have stopped paying current obligations in the ordinary course, or their property is not sufficient, at a fair valuation, to pay all obligations. Separately, creditors can apply for a bankruptcy order against a debtor if the debts owed to them amount to one thousand dollars and the debtor committed an act of bankruptcy within the six months before filing. If the debtor dies after an application is filed, the proceedings continue as if the debtor were alive, unless the court orders otherwise.

Whether a creditor can start a bankruptcy after death depends on the facts, so a lawyer can confirm your position before you act.