Evidentiary hearing for failure to list P/I case in bankruptcy

Asked 3 months ago - New York, NY

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Trustee is contesting my participation in exemptions due to failure to list P/I case as asset

Attorney answers (5)

  1. Pro

    Contributor Level 14

    9

    Lawyers agree

    Answered February 05, 2013 15:42. I guess you are asking if the trustee can do what he or she is doing & the answer of course will be decided by the judge.

    The issue is why you did not list the personal injury case in your bankruptcy petition?

    If it was an honest mistake, such as you had no intention of starting a law suit (assuming none had been started when you filed bankruptcy OR you thought the question in the Statement of Financial Affairs regarding law suits did not mean personal injury suits, whether because the case was not put into suit or you thought it meant collection law suits against you, you should be ok.

  2. Contributor Level 17

    7

    Lawyers agree

    Answered February 05, 2013 15:39. This is serious. Be sure to discuss it with your bankruptcy attorney. Yes, a trustee can dis-allow any applicable exemption due to your omitting this asset from your petition. Good luck.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more
  3. Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered February 06, 2013 06:59. Amend the petition and list the PI case. If there was bad faith the Trustee would still have an objection. If you do not have a lawyer, get one.

    Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and... more
  4. Contributor Level 16

    4

    Lawyers agree

    Answered February 05, 2013 15:41. You could lose your discharge over it.

  5. Pro

    Contributor Level 14

    4

    Lawyers agree

    Answered February 05, 2013 23:49. As has been pointed out, the big question is *why* you didn't list it.

    Once the trustee relies upon the lack of exemption, it is generally too late to amend your exemptions.

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