Choices after a Chapter 13 Debtor Dies?

A bankruptcy client, Dave, died unexpectedly just months into his Chapter 13 case. What happens to his bankruptcy case?
As a debtor in a chapter 13 bankruptcy, he was paying back his mortgage arrears to save his home and some credit cards as well. His plan payments were paid directly out of his check guaranteeing payment to the trustee every month.


I received a call from a firm representing the family. They were interested in knowing what happens to his case. There are several options.


First, the chapter 13 case could be dismissed when a debtor dies or it can be continued by an interested party or it can be converted to a chapter 7 case.


An interested party can apply for a hardship discharge of debtor’s debts which would preclude his creditors from coming after the estate if granted by the court. This way the debtor’s surviving family members do not have to deal with his creditors if the case was just dismissed.

As always, this is just an introduction to this particular issue and a consultation with a knowledgeable attorney is advised at all times.

Posted by

Joseph K. Githuku


Baltimore chapter 7 Lawyer. Maryland chapter 7 Lawyer. Baltimore Bankruptcy lawyer. Maryland Bankruptcy Lawyer.

Disclaimer: This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.



LVNV Funding, LLC Judgments Void

In a recent decision, the Maryland Court of Special Appeals ruled in Finch v. LVNV Funding, LLC that judgments entered in favor of an unlicensed collection agency are void, and therefore could be collaterally attacked. 

LVNV Funding, LLC is a major debt buyer and has sued Maryland individuals over the years for old debt. Just a case search today reveals at least 44 lawsuits by LVNV against Marylanders. Now, those judgments have been thrown into question by this ruling. The court determined that LVNV was a debt collector as definited in Maryland Statutes and therefore it was requried to go through the debt collector licensing process.  An appeal is likely to be noted to the Maryland Court of Appeals, but until them this is the law in Maryland. 

Posted by:

Joseph K. githuku

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