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Chapter 7 Postdischarge asset discovered
First National Bank of Jacksboro v. Lasater, 196 U.S. 115 (1905)
Issue: When the debtor does not disclose an asset to the chapter 7 trustee, what happens to the asset when the case is closed?
Holding: It remains with the estate.
>
> I agree with the other posters.
> This is not your responsibility.
> I think you should advise the client of the potential consequences of not reopening the case, amending the schedules and exemptions, and letting the asset be administered (or exempted). And what your fee would be to do that.
> I wouldn't write to the trustee until client authorizes you to do so.
> Jason Wallach
> On May 5, 2011, at 4:33 PM, Hale Andrew Antico wrote:
>
> >
> > A year after discharge, I'm informed about debtor's litigation I knew nothing about (and thus didn't put on Schedules B and C) which is resulting in a settlement. A no-asset Chapter 7 appears to be headed to an asset case. Question: not sure this is in my scope of representation to do a motion to reopen and amend the schedules, but it seems to be a good practice to do anyway. Any gotchas I should be on the lookout for, other than eating the cost of cleaning up the paperwork for the trustee to administer something?
> >
> >
>
The post was migrated from Yahoo.
charsetndows-1252
I agree with the other posters.
This is not your responsibility.
I think you should advise the client of the potential consequences of not reopening the case, amending the schedules and exemptions, and letting the asset be administered (or exempted). And what your fee would be to do that.
I wouldn't write to the trustee until client authorizes you to do so.
Jason Wallach
On May 5, 2011, at 4:33 PM, Hale Andrew Antico wrote:
>
> A year after discharge, I'm informed about debtor's litigation I knew nothing about (and thus didn't put on Schedules B and C) which is resulting in a settlement. A no-asset Chapter 7 appears to be headed to an asset case. Question: not sure this is in my scope of representation to do a motion to reopen and amend the schedules, but it seems to be a good practice to do anyway. Any gotchas I should be on the lookout for, other than eating the cost of cleaning up the paperwork for the trustee to administer something?
>
>
charsetndows-1252
I agree with the other posters.This is not your responsibility.I think you should advise the client of the potential consequences of not reopening the case, amending the schedules and exemptions, and letting the asset be administered (or exempted). And what your fee would be to do that.I wouldn't write to the trustee until client authorizes you to do so.Jason WallachOn May 5, 2011, at 4:33 PM, Hale Andrew Antico wrote:
A year after
discharge, I'm informed about debtor's litigation I knew nothing about (and thus
didn't put on Schedules B and C) which is resulting in a settlement. A no-asset
Chapter 7 appears to be headed to an asset case. Question: not sure this
is in my scope of representation to do a motion to reopen and amend the
schedules, but it seems to be a good practice to do anyway. Any gotchas I
should be on the lookout for, other than eating the cost of cleaning up thepaperwork for the trustee to administer
something?
The post was migrated from Yahoo.
Why assume any responsibility for, or burden related to this problem?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Mark J. Markus
Sent: Thursday, May 05, 2011 4:46 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Chapter 7 Postdischarge asset discovered
Just thinking out loud, but how about just informing the Trustee in writing
of the (hopefully inadvertently) omitted asset, and let the Trustee decide
whether to spend the resources to reopen the case? If you have exemptions
available that you would want to assert, reference those in the letter as
well. Your client may face an uphill battle being allowed the exemptions at
this stage, but if the Trustee reopens the case, you can file whatever you
want....
I don't think your reopening the case instead of the Trustee is going to
save your client from whatever negative effects there may be.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
The post was migrated from Yahoo.
I would charge the client. They are not going to be happy about it, but
without clearance from the bankruptcy, they cannot realize any benefits from
the settlement in any event. Perhaps they can exempt part of the recovery?
The downside, of course, is that when, not if, the other side to the civil
action brings the action to the attention of the Trustee, the client will
likely lose the discharge.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Hale Andrew Antico
Sent: Thursday, May 05, 2011 4:34 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Chapter 7 Postdischarge asset discovered
A year after discharge, I'm informed about debtor's litigation I knew
nothing about (and thus didn't put on Schedules B and C) which is resulting
in a settlement. A no-asset Chapter 7 appears to be headed to an asset case.
Question: not sure this is in my scope of representation to do a motion to
reopen and amend the schedules, but it seems to be a good practice to do
anyway. Any gotchas I should be on the lookout for, other than eating the
cost of cleaning up the paperwork for the trustee to administer something?
Message
I would charge theclient. They are not going to be happy about it, but without clearance
from the bankruptcy, they cannot realize any benefits from the settlement in any
event. Perhaps they can exempt part of the recovery? The downside,
of course, is that when, not if, the other side to the civil action brings the
action to the attention of the Trustee, the client will likely lose the
discharge.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
Just thinking out loud, but how about just informing the Trustee in
writing of the (hopefully inadvertently) omitted asset, and let the
Trustee decide whether to spend the resources to reopen the case?
If you have exemptions available that you would want to assert,
reference those in the letter as well. Your client may face an
uphill battle being allowed the exemptions at this stage, but if the
Trustee reopens the case, you can file whatever you want....
I don't think your reopening the case instead of the Trustee is
going to save your client from whatever negative effects there may be.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this
means at
The post was migrated from Yahoo.
Why should you bear the cost of doing so if your client failed to disclose the
matter initially?
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, Suite 640
Woodland Hills, California 91364-2226
Telephone: (818) 226-1205
Facsimile : (818) 226-1213
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________________________________
To: cdcbaa@yahoogroups.com
Sent: Thu, May 5, 2011 4:33:40 PM
Subject: [cdcbaa] Chapter 7 Postdischarge asset discovered
A year after discharge, I'm informed about debtor's litigation I knew nothing
about (and thus didn't put on Schedules B and C) which is resulting in a
settlement. A no-asset Chapter 7 appears to be headed to an asset case. Question: not sure this is in my scope of representation to do a motion toreopen and amend the schedules, but it seems to be a good practice to do
anyway. Any gotchas I should be on the lookout for, other than eating the cost
of cleaning up the paperwork for the trustee to administer something?
Why should you bear the cost of doing so if your client failed to disclose the matter initially? Kenneth Jay Schwartz, Esq.LAW OFFICE OF KENNETH JAY SCHWARTZ21031 Ventura Boulevard, Suite 640Woodland Hills, California 91364-2226Telephone: (818) 226-1205Facsimile : (818) 226-1213THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW,
DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.From: Hale Andrew Antico <bk.lawyer@gmail.com>To: cdcbaa@yahoogroups.comSent: Thu, May 5, 2011 4:33:40 PMSubject: [cdcbaa] Chapter 7 Postdischarge asset discovered
A year after
discharge, I'm informed about debtor's litigation I knew nothing about (and thus
didn't put on Schedules B and C) which is resulting in a settlement. A no-asset
Chapter 7 appears to be headed to an asset case. Question: not sure this
is in my scope of representation to do a motion to reopen and amend the
schedules, but it seems to be a good practice to do anyway. Any gotchas I
should be on the lookout for, other than eating the cost of cleaning up thepaperwork for the trustee to administer
something?
The post was migrated from Yahoo.
A year after discharge, I'm informed about debtor's litigation I knew
nothing about (and thus didn't put on Schedules B and C) which is resulting
in a settlement. A no-asset Chapter 7 appears to be headed to an asset case.
Question: not sure this is in my scope of representation to do a motion to
reopen and amend the schedules, but it seems to be a good practice to do
anyway. Any gotchas I should be on the lookout for, other than eating the
cost of cleaning up the paperwork for the trustee to administer something?
A year after
discharge, I'm informed about debtor's litigation I knew nothing about (and thus
didn't put on Schedules B and C) which is resulting in a settlement. A no-asset
Chapter 7 appears to be headed to an asset case. Question: not sure this
is in my scope of representation to do a motion to reopen and amend the
schedules, but it seems to be a good practice to do anyway. Any gotchas I
should be on the lookout for, other than eating the cost of cleaning up thepaperwork for the trustee to administer
something?
The post was migrated from Yahoo.