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Debtor Who Receives Discharge Not Entitled to Recover an Undisclosed Tort Claim According to Latest ABI Poll

Contact: John Hartgen
             (703) 739-0800
             jhartgen@abiworld.org

DEBTOR WHO RECEIVES DISCHARGE NOT ENTITLED TO RECOVER AN UNDISCLOSED TORT CLAIM, ACCORDING TO LATEST ABI POLL

July 10, 2006, Alexandria, Va. — Nearly 80 percent of respondents to a recent American Bankruptcy Institute online poll agreed that the trustee, not a debtor who receives a discharge from bankruptcy, can recover a previously undisclosed tort claim.  Of the majority of respondents, 62 percent “strongly agreed” and 16 percent “somewhat agreed” that a debtor who receives a discharge cannot recover on a previously undisclosed tort claim; rather that the claim belongs to the trustee for the benefit of the creditors.

Conversely, only 6 percent of respondents “disagreed strongly” and another 5 percent “disagreed somewhat” that undisclosed tort claims should be recovered by the trustee rather than by a debtor who has received a discharge. Eleven percent of the respondents did not know or had no opinion on the issue.

ABI membership and members of the public were welcome to submit their response to the statement: “Question:A debtor who receives a discharge cannot recover on a previously undisclosed tort claim; rather the claim belongs to the trustee for the benefit of creditors.” The latest ABI Quick Poll was open for voting to the public and ABI members from June 30 – July 6.

The ABI Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.