Legal Question in Bankruptcy in California
lawsuit after bankruptcy
I filed and recieved a ch 7 bankruptcy. I want to file a lawsuit against one of the creditors in the lawsuit for things they did before I filed(actually, their actions caused me to file ch 7). Do I have to reopen the ch 7 case or do anything with the ch 7 in order to pursue the suit.
2 Answers from Attorneys
Re: lawsuit after bankruptcy
If the cause of action arose before you filed the bankruptcy, the potential asset would be part of the bankruptcy that could be distributed to the creditors. It might not be worth your while to pursue it.
Re: lawsuit after bankruptcy
If you had claims against a creditor that existed at the time you filed for bankruptcy, you should disclosed these claims on Schedule B of your bankruptcy and claimed them as exempt to the extent allowed by California law. If you failed to do this, you would probably need to file a motion to reopen the case, disclose the asset and then let the trustee decided if the claims are worth pursuing on behalf of your creditors. If the trustee decides against this and abandons the claims, then you would have standing to bring your suit.
You should consult a local bankruptcy attorney if you do not already have one. You signed your bankruptcy papers were signed under penalty of perjury, so you need appropriate advice on the consequences of reopening your case and bring this matter to the attention of the court.
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