Does a debtor have a duty to properly schedule their assets and liabilities?

California, United States of America


The following excerpt is from De Jesus v. Aurora Loan Servs. LLC, B251852 (Cal. App. 2015):

The Bankruptcy Code places an affirmative duty on debtors to schedule their assets and liabilities. (Cusano, supra, 264 F.3d at p. 945, citing 11 U.S.C. 521(1).) If a debtor fails to properly schedule an asset, including a cause of action, that asset continues to belong to the bankruptcy estate and does not revert to the debtor upon discharge. (Ibid.) As one court has explained, "By operation of statute, assets that [debtor] failed to schedule remained the bankruptcy estate's property, even after the court discharged his debt. 11 U.S.C. 554(c), (d)." (Dunmore v. U.S. (9th Cir. 2004) 358 F.3d 1107, 1112.)

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