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The Rule is clear that the debtor's death does not change anything, unless it is not possible to continue the case. In In re CR Stone Concrete Contractors, Inc., 462 BR 6, 24-28 (2011), the US Bankruptcy Court for the Eastern District of Massachusetts held that a bankruptcy action is not extinguished by the death of the debtor.
Substitution of the debtor by a representative is accomplished under FRCP 25. As the claim is not extinguished, if a representative of the debtor cannot be found to take over the case, the court can rule on the involuntary petition without the debtor or the representative, and either dismiss the action or enter an order of relief -- followed by the administration of the debtor's estate.
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Thank you for your response and the enclosed case.
However, the case dealt with the death within the bankruptcy.
Would you please clarify one point that is not addressed in your response. It pertains to the date in an involuntary 7, not a voluntary 7. If there is a death before the court issues an order for relief in an involuntary 7, isn't the bankruptcy dismissed because there is no individual alive at that time. I understand the continuation of the case once the order for relief is entered. But if the debtor is not alive at the time the order is entered, doesn't 1016 not apply?
I have looked and found nothing on this point.
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