Legal Question in Bankruptcy in California

Your San Diego Bankruptcy Attorney's take is that whether you pursue the claim now or later, the material fact is that the claim presumably arose prior to your bankruptcy filing. As such, any potential recovery is an asset--property of the bankruptcy estate--which must be exempted (protected in chapter 7 or factored into the payment threshold in chapter 13 bankruptcy). While liquidation in chapter 7 bankruptcy is very rare in this neck of the woods, you cannot exempt unlimited assets in bankruptcy or have your cake and eat it. Retain competent bankruptcy counsel to determine the extent of available exemptions for this asset.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it�s independent of other answers. It may be time sensitive, as in past the �Use by� date: laws and case law change. Hire legal counsel before acting or refraining from bankruptcy/legal action.

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