Critical Case Comment: Reed v. City of Arlington (In re Reed)

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee, Middle District of TN

Reed v. City of Arlington (In re Reed), 2011 WL 3506100 (5th Cir, August 11, 2011) (King)

Absent unusual circumstances, an innocent trustee can pursue for the benefit of creditors a judgment or cause of action that the debtor fails to disclose in bankruptcy.

Case Summary

Sitting en banc, the Fifth Circuit reversed a decision of one of its panels in holding that a Chapter 7 Trustee was not subject to estoppel when the Debtor failed to disclose a . . .

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