Chapter 7 and my company lawsuit

[SanJose1760]

Jurisdiction

California

Hi

I filed chapter 7 bankruptcy but my company won a lawsuit after BK was already done. The lawsuit was filed through a third party company for a recall and I won over $1M. I didn't report it because I forgot that it was existing. What should I do?

 

[army judge]

Hi

I filed chapter 7 bankruptcy but my company won a lawsuit after BK was already done. The lawsuit was filed through a third party company for a recall and I won over $1M. I didn't report it because I forgot that it was existing. What should I do?

You know what you did isn't allowed.
The referee goes over stunts like the one you pulled.
If I were you, I'd spend some that million dollars to hire a good lawyer, if you expect to keep some of the million dollars, mate.

You play, you gotta pay, cause there ain't no free lunches, kid.

 

[despritfreya]

There is just not enough info.

You state "my company". What do you mean? Your employer? A corporation or LLC that you control? What?

You state the suit was filed through some third party. What does that mean? Who sued whom and what was the complaint about?

You state you filed bk and that it is done. I assume you mean you personally filed bk, not the "company". I assume you filed a Chapter 7. Did you list an ownership interest in this "company"?

There are ton of other questions I could ask but without some really basic info it makes no sense to ask them.

Des.

 

[Michael Wechsler]

It seems as though the original poster may have owned a business, sole proprietor or even a small business LLC, filed for Chapter 7 bankruptcy and went through the process without listing the lawsuit. One has to wonder whether the company was even dissolved, which would be rather ironic in the event that the proceeds of the lawsuit greatly exceeded the amount of the debt to be discharged in the bankruptcy filing. I think @army judge has the right idea - this "mistake" isn't going to result in a free lunch, especially when the wheels of payment begin turning.

 

[despritfreya]

All depends upon what he/she disclosed. If he/she disclosed ownership in a corp or LLC and the Trustee failed to investigate well. . . Of course, if the Trustee was misled to think the entity was worthless or the entity was not disclosed, that is an entirely different story.

Just dealt with a case where, two years after the personal bk was closed, Trustee got wind of excess proceeds from the foreclosure of real property owned by the debtor's LLC Trustee reopened the case. Debtor had disclosed the LLC in his schedules, trustee investigated and determined that the membership interest was worthless and then closed the personal case as a no asset case, thus abandoning any interest the estate had in the LLC. Trustee's reopening of the case to claim an interest in those excess proceeds belonging to the single member LLC was improper. Took a simple letter to get the Trustee to "go away".

We do not have enough info and if OP ever comes back I urge him/her to give us more.

Des.

 

[army judge]

All depends upon what he/she disclosed. If he/she disclosed ownership in a corp or LLC and the Trustee failed to investigate well. . . Of course, if the Trustee was misled to think the entity was worthless or the entity was not disclosed, that is an entirely different story.

Just dealt with a case where, two years after the personal bk was closed, Trustee got wind of excess proceeds from the foreclosure of real property owned by the debtor's LLC Trustee reopened the case. Debtor had disclosed the LLC in his schedules, trustee investigated and determined that the membership interest was worthless and then closed the personal case as a no asset case, thus abandoning any interest the estate had in the LLC. Trustee's reopening of the case to claim an interest in those excess proceeds belonging to the single member LLC was improper. Took a simple letter to get the Trustee to "go away".

We do not have enough info and if OP ever comes back I urge him/her to give us more.

Des.

You are the expert in BK law.
If a client ever required BK assistance, I refer them to contact you without hesitation.
However, my spidy senses tingled as I opened this thread.
My spidy senses only tingle when _________

 

[despritfreya]

. . . my spidy senses tingled as I opened this thread. My spidy senses only tingle when _________

Understood. Hope you are wrong but you are probably correct.

Des.