Rule 1016 Federal Rules of Bankruptcy Procedure

Rule 1016 of the Federal Rules of Bankruptcy Procedure is about Death or Incompetency of a Debtor. It is under Part I (Commencement of Case; Proceedings Relating to Petition and Order for Relief) of the Rules.

(a) Chapter 7 Case. In a Chapter 7 case, the debtor’s death or incompetency does not abate the case. The case continues, as far as possible, as though the death or incompetency had not occurred.

(b) Chapter 11, 12, or 13 Case. Upon the debtor’s death or incompetency in a Chapter 11, 12, or 13 case, the court may dismiss the case or may permit it to continue if further administration is possible and is in the parties’ best interests. If the case continues, it must proceed and be concluded in the same manner as though the death or incompetency had not occurred.