Counsel’s duty to add lawsuits to schedules in chapter 13 after filing
If a cause of action arises post-petition in chapter 13, counsel should amend schedules to add it to the list of assets. In Storey v. Capital Link Mgmt., LLC, 2021 U.S. Dist. LEXIS 200937, case no 2:21-cv-00293-SPC-NPM (M.D. Fla. 19 October 2021) district court denied motion to dismiss FDPCA action for repeated postpetition collection attempts by creditor after repeated cease and desist letters due to failure to amend schedule B to disclose asset, but indicated might have granted absent the partial disclosure of the cause of action in the motion to employ special counsel, and the provision in the order confirming plan requiring contribution from proceeds of suit in order confirming plan.
Similar issue Stevens v. Whitmore (In re Stevens) 2021 U.S. App. LEXIS 31330, case no 20-60044 (9th Cir., 19 Oct 2021) Circuit affirmed bankruptcy court finding that even though claim was listed in statement of financial affairs and discussed with trustee, since not on schedule B trustee’s report of no distribution and closing of case did not abandon claim, and allowed reopening of case to trustee to settle prepetition claim with mortgage servicing company with all funds going to estate.