Only trustee, not debtor, can bring lawsuit on pre-petition cause of action

Submitted by Anonymous (not verified) on Sun, 10/28/2012 - 18:00
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Auday v. Wet Seal Retail, Inc., Case No. 12-5057 (6th Cir., Oct. 25, 2012) (recommended for full-text publication). 
As most bankruptcy practitioners know, a debtor’s pre-petition cause of action – whether for personal injury, breach of contract, or other claim – is property of the bankruptcy estate.  Now, the Sixth Circuit has clarified that only the trustee can file suit in connection with a Chapter 7 debtor’s pre-petition cause of action, unless the action is abandoned. Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 7