§ 32.6     Theft or Casualty Losses
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 32.6, at ¶ ____, LundinOnChapter13.com (last visited __________).

Property that has been stolen from the debtor or lost through some casualty must be described and explained in the schedules. If the lost or stolen property was valuable, counsel should determine whether the debtor reported the loss to the appropriate authorities and what efforts have been made at recovery. A casualty loss or accident covered by insurance is property of the estate and must be accounted for in the Chapter 13 case.


Lost or stolen property for which there is no police report or contemporaneous evidence of loss is the sort of red-flag information that counsel wants to know going into a Chapter 13 case. It may not be too late to help the debtor account for the loss in a more convincing way. If the debtor’s only explanation for missing collateral is “it was stolen,” confirmation could be a problem.1


1  See § 181.1 [ Prepetition Transfers and Transactions ] § 105.2  Prepetition Transfers and Transactions.