Causes of Action Owned by a Debtor
This panel deals with the various issues that arise when a debtor owns a cause of action and the distinctions that occur depending on whether the debtor’s cause of action arose pre-petition, post-petition, post-confirmation, post-discharge or at any other time. How are pre-petition causes of action valued for purposes of confirming a plan? What happens if the debtor’s cause of action pays off during a chapter 13 case (who gets the money)? What obligations do debtors have to amend their schedules to deal with post-petition events that create causes of action? What are the debtor’s obligations to keep the bankruptcy court and the debtor’s creditors informed? Are there potential judicial estoppel arguments that can arise?