1016-1:  Death or Incompetency of a Debtor:  Continuing or Dismissing the Case

** UPDATED 10-21-2024 **

FRBP 1016 provides authority for parties to continue or dismiss a case if a debtor is incompetent or has passed away.  That authority depends on whether the case is a chapter 7 case, or a chapter 11, 12 or 13 case:

• Chapter 7 Case -- Death or incompetency does not abate the case, and the trustee continues the case as far as possible as if the death or incompetency has not occurred.  A motion and order are not needed.  
• Chapter 11. 12 or 13 Case -- Pursuant to FRBP 1016, the court has authority to dismiss the case or to continue the case if further administration is possible and continuance is in the best interest of parties.  EFFECTIVE 10-21-2024, new LBR 1016-1 clarifies that if a party wishes to continue the case, the procedure is to file a motion and serve it on the U.S. trustee, case trustee, and all creditors using the procedure of either LBR 9013-1(o) or schedule a hearing under LBR 9013-1(d).