[CLBS] Deceased chapter 13 client

[Ken Anderson]

Many years ago I had an elderly single man as a ch 13 debtor; no co-debtor.
He died during the pendency of the plan. The plan was doing a lot of
cram-downs on personal property that his daughter, the sole heir, wanted. So
I had a probate filed, had her appointment PR, and offered a modification of
the plan to substitute her for the debtor with the daughter continuing the
plan payments. There was only about six months or so to completion, so she
stood to inherit the personal property lien-free.  It worked. There were no
objections and Judge Hagan granted the motion to modify. I don't know if the
outcome would have been otherwise had there been an objection from one of
the secured creditors or not. Also, I have no idea as to whether either of
our current judges would agree with that approach. Anyway, it's something to
think about.

-Ken Anderson

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Matt Shriver
Sent: Wednesday, December 19, 2012 10:27 AM
To: 'clbs at admws.idaho.gov'
Subject: [CLBS] Deceased chapter 13 client

I have a client in a chapter 13 who recently passed way. There is no
co-debtor.

Rule 1016 says that a case on under chapter 13 "may be dismissed" and also
that death of the debtor does not "abate a liquidation case under chapter
7."

Instead of dismissing the case, is there a basis for converting it to a
chapter 7 if she would have otherwise qualified except for the means test?
If so, does the PR appear at the 341? Also, it appears that there may have
been some non-exempt assets. If I can convert to a 7, property of the estate
and exemptions are determined on the petition date, correct? Are there any
concerns about post-petition debts/property I should be aware of?

Any thoughts or assistance is appreciated.

Sincerely,



Matthew K. Shriver
Foley Freeman, PLLC
1224 1st Street South, Suite 301
Nampa, Idaho 83651

P.O. Box 1059
Nampa, ID 83653

Office:  (208) 318-0045
Fax:  (208) 466-3529

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