In Re: James A. and Elizabeth C. Zachman

I. Background

Debtors filed a voluntary chapter 7 petition on May 17, 2010. (Chapter 7 Voluntary Petition, In re Zachman, No. 8:10-bk-16593-TA (Bankr. C.D. Cal. May 17, 2010) (Dkt. 1) (hereinafter “Bankr. Dkt.”).) In Debtors’ schedules of assets and liabilities, Debtors indicated that Debtor James Zachman owned an interest in “Real Time Data Services, LLC,” a Delaware limited liability company, with an estimated value of $2,500. (See Bankr. Dkt. 9 at 16 (list of Schedule B assets).) Debtors claimed this property as exempt pursuant to California Code of Civil Procedure § 695.060. (Id. at 18 (list of Schedule C property claimed as exempt).) On September 7, 2020, the bankruptcy court discharged both Debtors. (Bankr. Dkt. 19). The clerk of court subsequently closed Debtors’ bankruptcy case on September 24, 2010. (Bankr. Dkt. 21.) Several years after the bankruptcy proceedings closed, Debtor James Zachman brought actions in both state and federal court related to his claimed interest in Real Time Data Services, LLC. (See, e.g., Dkts. 11-10; 15 at 4-5; 17 at 4-5.) Relevantly, Debtor James Zachman alleged five claims against three defendants and one intervenor-defendant…