5th Circ. Says Trustee Can Pursue Hidden Ch. 7 Asset

Law360, New York (August 12, 2011, 4:03 PM EDT) -- The Fifth Circuit affirmed en banc Thursday a district court's ruling that a bankruptcy trustee could pursue a $1 million claim against Arlington, Texas, despite the fact that the debtor didn't disclose that asset when he filed for Chapter 7.

The decision reversed a three-judge panel of the Fifth Circuit, which ruled in 2010 that trustee Diane G. Reed could not pursue settlement money awarded to former firefighter Kim Lubke in a Family and Medical Leave Act suit against the city, reasoning that the balance of...
To view the full article, register now.