Litigation

[kmkm]

When a person is going through the process of CH7 and that person is named defendant in a newly filed tort case, is the case of any interest to the trustee and is the debtor obligated to reveal newly filed litigation prior to say,,discharge.

[fltoo]

Well, since you mentioned that it is a tort case, I am assuming someone is holding you liable for something? If you have not filed yet, I would wait to see how the case pans out.

Although I would definitely tell the BK attorney about this, I can't see the trustee being interested in it since you are the defendent.

HHM is a good one to answer this better.

[kmkm]

Thanks, fltoo

I am not a debtor. I'm on the other side.

[fltoo]

OK, so you filed the tort case? Unfortunately, the trustee only cares about getting money for himself and the creditors. Doesn't care about how much more the debtor owes.

Best for you to get advice from the attorney who is representing you. Maybe he has a BK lawyer associate that can answer that question.

The good news might be...............if he has already filed, he cannot file again for quite a few years. Might be good for you to wait until he is discharged.

[HHM]

The trustee will not take interest in it as you are the defendant (unless you have possible counter claims). However, the plaintiff would be a creditor of yours. Arguably, the event that gave rise to this persons lawsuit against you occurred before you filed Chapter 7, so they are a creditor of yours and should be included as such. The real issue is whether the claim against you can be discharged in bankruptcy. There is no general exception to Tort Claims in BK so many tort claims can be discharged, but there are specific exceptions (i.e. causing injury or death while driving intoxicated).

You probably want to amend your petition to include this claim so it can be discharged.

[fltoo]

I think he is the plaintiff. He said he is not the debtor.

[justbroke]

HHM beat me to it. Make sure they are listed as a creditor and that is it "disputed" and "unliquidated", and probably set a value at $1.00.

[fltoo]

Thanks, fltoo

I am not a debtor. I'm on the other side.

He is the plaintiff!!! LOL or is my brain misfiring again due to aging(as my kids tell me)

[HHM]

In his original post he says he is the defendant, as in someone filing suit against him.

I am sure he will pop into to clarify. My response is based on him being the defendant.

[StartingOver08]

I am not a debtor. I'm on the other side.

In post #3 he says he is the plaintiff.

[kmkm]

Forgive me for being altogether unclear.
I am a creditor of a BK7 debtor. The debtor that owes me has a new tort case filed against him 4/21/09. I did not file the new tort. The BK case is ongoing and debtor is ineligible for discharge.

Is the debtor required to file anything to BK court regarding the new case?

Does the trustee take any interest in such an event?

[HHM]

Unless the event that gave rise to this tort claim occured after the case was filed, the debtor needs to disclose, but the trustee will not have any direct interest in the case since the debtor is the defendant.