A Colorado Bankruptcy Court was faced with a motion to reconsider a dismissal motion after a Chapter 13 plan was completed by payments made by the personal representative of the Debtor. The Debtor had passed within the first month after confirmation, but no one told the Bankruptcy Court. After the plan was completed, the Personal Representative filed a motion to waive the requirements of the financial management course. The Court denied the motion and dismissed the case. The Personal Representative then filed a motion to reconsider.
In the motion to reconsider, the Court analyzed the difference of Rule 1016 in a Chapter 13 case vs. a Chapter 7 case. Rule 1016 provides in part that upon the death of a debtor the case can be dismissed or if it is in the best interest of the parties, the case may continue. The Court focused upon the creditors as the parties vs. the personal representative who would have inherited the remaining assets of the deceased debtor. If the case was dismissed, then the creditors would get paid more but on the other hand if the case was not dismissed then the representative would get the assets.
The Court appeared to be upset about the failure of the parties to inform the court of the death and chose to wait 3 years to then advise the Court. The Court indicated that it would have been in a better position to analyze the situation if it was advised immediately.
Based upon the Court's reading of the law, the Court denied the motion to reconsider.
A quick comment - this was a motion to reconsider and the Court did not seem to focus on why it should reconsider its prior order but rather analyzed the entire situation.
In re Keith Fogel Ssn Xx 6566, 2014 Bankr. LEXIS 2734 Folder icon(Copy citation)
United States Bankruptcy Court for the District of Colorado
June 20, 2014, Decided
Case No. 10-38010 ABC Chapter 13
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