Death of A Chapter 13 Debtor Prior to Plan Completion
July 27, 2022
In a Chapter 13 (“Ch. 13”) case a “Friend” of the debtor, Executor, and/or Administratrix will be able to complete a Ch. 13 debtor’s obligation and intentions under the Plan in effect at the time of the debtor’s demise. However, this “Friend” of the debtor will likely not be able to modify the debtor’s Plan in effect at the time of the debtor’s demise.
In our case, the Ch. 13 debtors, who filed her case one day before the scheduled foreclosure sale of her home in which she had significant equity, passed away after she finally reluctantly agreed to sell her home pursuant to her 5th amended Ch. 13 Plan. The debtor had a will, however, both of the Executors named in the Will had predeceased the debtor.
Fortunately for the debtor and all of her beneficiaries, the debtor had a sister who was able to retain a probate attorney and get appointed Administratrix of the debtor’s probate Estate in the “nick of time”, i.e. before the mortgage lender was able to lift the Automatic Stay and reschedule the previously scheduled, pre-petition, foreclosure sale of the debtor’s home.
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