The recent case of Javier Milian vs. Wells Fargo & Company, et al,, Case 13-CV-22201-KMM (February 18, 2014) illustrates the importance of a person completing his bankruptcy schedules fully and accurately - including as to unfixed and contingent claim. In this case, the doctrine of "judicial estoppel" was applied to bar the debtor from pursuing a claim against his mortgage lender as he failed to list the claim in his bankruptcy schedules. In this case, the Bankruptcy Court's decision to abstain and also apply the doctrine of judicial estoppel was upheld.
Debtor's Question of Ownership of the Mortgage Note
The debtor/homeowner asserted a defense to Wells Fargo's mortgage foreclosure complaint that it lacked standing as it was not the "holder" of the mortgage note. The day before the foreclosure sale, the debtor pro se filed for chapter 7 bankruptcy and stayed the foreclosure sale. As part of the bankruptcy case, the debtor filed an adversary proceeding and questioned the ownership of the mortgage note by Well Fargo.