In re Grundmeyer
Jul 24, 2019OUTCOME: The court denied the Chapter 7 Trustee's motion to reopen, and my client was able to keep the proceeds of his lawsuit out of the bankruptcy case.
The Chapter 7 Trustee attempted to re-open my client's case to administer a product liability claim, which would have meant the Trustee would take the lawsuit settlement funds and pay them to my client ... 's creditors in addition to taking a commission for himself. I represented the debtor and opposed the motion to re-open, arguing that the debtor's claim arose after the bankruptcy filing and was therefore not part of the bankruptcy estate (and not subject to administration by the Trustee).
