Chasen Kyle Stanley
Opinion
Trial Court Opinion
I. Background
The Debtor filed a voluntary Chapter 7 petition on April 27, 2017.3 On June 6, 2017, the Trustee issued a Report of No Distribution.4 The Debtor received a discharge on August 14, 2017,5 and the case was closed on August 22, 2017.6 On April 26, 2018, upon the Debtor’s motion, the Court reopened the case so that the Debtor could file amended schedules.7 In his amended schedules, the Debtor disclosed an interest in several business entities, including “Jason Lilly Association, a non-profit association.”8 In the column requiring him to specify his ownership interest in Jason Lilly Association (“JLA”), the Debtor stated “N/A.”9 The Debtor valued his interest in JLA at $0.00.10 In ¶ 33 of Schedule A/B—which requires debtors to list “claims against third parties, whether or not you have filed a lawsuit or made a demand for payment”—the Debtor did not schedule any causes of action related to his interest in JLA.11 On November 15, 2018, the Trustee issued a second Report of No Distribution. The case was re-closed on December 18, 2018. On February 7, 2020, the Debtor filed a Complaint against the Objectors in the Orange County Superior Court (the “State Court Action”). The…