Does the punishment continue for the debtor if he dies before paying his debt, and the debt is waived by the government or the bank after his assets, which did not fully cover the debt, were seized?

A Muslim should not be lackadaisical in matters of faith, nor should they incur debt except out of necessity, and they should hasten to repay it. If the debtor dies before repayment, the believer's soul remains suspended by their debt until it is paid on their behalf. If they intended to repay it, Allah will pay it for them. As for bankruptcy, it does not nullify the debt; it remains a liability. If the creditor willingly waives the debt, it is remitted from the debtor. However, if the waiver is based on man-made laws for a specific entity, the debt is not remitted and remains a liability. If the debt is directly owed to the government or an entity owned by it, and the government waives the debt, it is remitted, and there is no sin upon the debtor.