Approximately two months after the case was filed, the plaintiff and her husband filed a voluntary Chapter 7 bankruptcy petition. Plaintiff’s disclosure of her assets and liabilities listed a contingent claim described as “Class action lawsuit against Great Seneca Financial Corp.” The class action brought against the law firm for Great Seneca, however, was not separately listed.

When the trustee discovered the claim he refused to abandon it, and reopened the bankruptcy case to deal with it. The court allowed him to do so, maintaining that the trustee has the right and duty to manage the estate for the benefit of Plaintiff’s creditors, and this Court will not interfere in the trustee’s decision to settle the claim.

The court also held that it is only in unusual circumstances where a Chapter 7 trustee is not an adequate representative for a class of non-debtors, even if the class includes the debtor.