Central District Consumer Bankruptcy Attorney's Association

X-eGroups-Edited-By: easky1
Mark;
I think you have it right. I'd just add to be sure to give effected
creditor notice.
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456
>( Fax (562) 684-0202
>* sblever@leverlaw.com
> www.leverlaw.com
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Am I correct that a former debtor does not have standing to pursue a cause of action in state court post discharge for a prepetition claim that was not disclosed in the Chapter 7 schedules or statements? Section 554(c) only abandons property back to the debtor at the close of the case that is scheduled and 554(d) confirms that the asset remains property of the estate. I know the defendant can raise an equitable estoppel defense if the debtor knew of the claim and did not list it as an asset, but we never get to that if the debtor does not have standing to sue on a claim that still belongs to the estate.
Am I right the only way around this would be for the debtor to seek reopening the case to disclose and exempt the claim if in fact the asset was either unknown to debtor or somehow innocently overlooked and then pursue the cause of action once the estate is closed a second time and the trustee chooses not to administer the asset?
Mark Jessee

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