Legal Question in Bankruptcy in Louisiana

Re: Discharge From Bankruptcy

Dear LawGuru Friend,

If you filed a Chapter 7 Bankrupty, IPSO FACTO by the very fact of your filing it, everything you owned not exempt by law from seizure became the property of the Trustee in Bankruptcy. However, it the Trustee allowed your discharge and did not even notify you that you could not settle this claim youself wihout his approval and the money's going to him for the benefit of your creditors, and his, then it would appear to me that he has "disclaimed" any interest in that asset; probably as being impractical for him to collect it and disburse the proceeds among your creditors and a portion to himself. I think you are clear to proceed with your law suit. Of course, if the Trustee is still claiming any interest in the lawsuit, you will find out very soon, once you begin to move forward with the lawsuit. If you must know the answer immediately, just call him and ask him if he has any objection to your proceeding with the suit. My guess is that this suit and the cause of action upon which it is based are indeed property of the bankruptcy court; just like your state and federal income tax returns would be, even though you receivied a discharge before the income tax returns were paid to you by the government. So the safest thing is to call him and just up and ask him what his position is. I suggest further that if he says he is claiming the lawsuit, then bargain with him to buy him out for some cheap price or an agreement for a very small percentage of the settlement or judgment, if and when it is made; for he can't do much without you as a witness and plaintiff to pursue the claim against the insurance company. Good luck! If he seeks to assert his right to the claim, offer him a hundred-dollars or so for his interest and for him to disclaim any interest in the law suit. My guess is that he will take your offer, and that would only be if he still urges an interest in the law suit. Again, good luck!

Sincerely,

Hardy Parkerson, Atty.

Lake Charles, Baton Rouge and New Orleans

(Ronald Reagan Caucus Candidate for Governor of Louisiana - 2007)