Legal Question in Bankruptcy in California

I am a creditor in a California bankruptcy. My claim stems from a judgement for failure to return a security deposit. The Debtor in Possession's mother just died in New Jersey. Does the DIP have to disclose the amount of bequeathment?


Asked on 4/10/10, 1:07 pm

2 Answers from Attorneys

Asaph Abrams Law Office of Asaph Abrams

I don't represent creditors (and I do not represent this debtor), however this is an important point for debtors to know.

The answer to your question is, Yes: present/future interests in the estate of a decedent (meaning, where the person has already passed away) that exist at the time of the filing of the bankruptcy, must be reported on the bankruptcy schedules. If such an interest is created within 180 days after the filing of the bankruptcy, the debtor must still report it.

Disclaimer: the above as well as any information found on our Web site is not legal advice and should not be relied upon. It does not create an attorney-client relationship. Unilateral communications may be misconstrued as they do not address all facets, nuances, and particulars, or all means of addressing a situation. This is strictly my opinion provided for general informational purposes and it pertains to California law. Seek legal and other professional counsel before acting in relation to bankruptcy. It's worth the cost.

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Answered on 4/15/10, 1:29 pm
David Gibbs The Gibbs Law Firm, APC

Mr. Abrams is correct - it must be disclosed to the Trustee and the Court. If the debtor fails to do so, you should bring it to the attention of the chapter trustee (preferably prior-to the meeting of creditors), as well as the Office of the U.S. Trustee. You can find the information for both on the notice that you received from the Bankruptcy Court. You can also hire an attorney, however, based upon the description of the claim you have, it may not be cost effective.

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Answered on 4/15/10, 1:37 pm


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