Sadly, there are occasions where a debtor passes away before a discharge enters, or a Chapter 7 case is concluded. Rule 1016, of the Federal Rules of Bankruptcy Procedure, expressly provides, however, that the case does not “abate,” or terminate: “death or incompetency of the debtor shall not abate a liquidation case under chapter 7 of the Code. In such event the estate shall be administered, and the case concluded in the same manner, so far as possible, as though the death or incompetency had not occurred.” If a discharge has not yet entered, the family of the deceased might well want to continue with the case to insure that a discharge is granted. It is important, however, for a suggestion of death to be filed with the court, and served upon the trustee, with a copy of the death certificate attached. The form of the suggestion is not particularly critical, as long as needed information is supplied. I have on this website a form entitled “Notice of Death or Incompetency of a Debtor”. Most attorneys filing bankruptcy cases will also have a suitable form. Just contact the attorney who filed the case, or, get it touch with the trustee and he or she will be able to assist.
Death or Incompetency of the debtor