Bankruptcy Basics: Claims Against Third Parties
If the debtor has any potential causes of action, it is very important to list them both on Schedule A/B and on Schedule C (if an exemption can be claimed). The potential claims should be listed even if the debtor expects only to use the claim defensively (for example, as an objection or by way of recoupment to a creditor’s proof of claim). The debtor’s failure to list causes of action or claims may preclude the debtor from pursuing them after bankruptcy under the doctrines of standing and judicial estoppel.