California, United States of America
The following excerpt is from Jones v. Wells Fargo Bank, N.A., H043954, H045165 (Cal. App. 2019):
"Causes of action are separate assets which must be formally listed." (Cusano v. Klein (9th Cir. 2001) 264 F.3d 936, 947 (Cusano).) "[A] chapter 7 debtor may not prosecute on his or her own a cause of action belonging to the bankruptcy estate unless the claim has been abandoned by the trustee." (Bostanian, supra, 52 Cal.App.4th at p. 1081.) "Property of a bankruptcy estate can be abandoned by three methods: (1) after notice and hearing, the trustee may unilaterally abandon property that is 'burdensome . . . or . . . of inconsequential value' (11 U.S.C. 554(a)); (2) after notice and hearing, the court may order the trustee to abandon such property (11 U.S.C. 554(b)); [and] (3) any
Page 10
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.