Young v. Independent Bank, 294 Mich. App. 141

Plaintiff sought to quiet title to her primary residence after filing for Chapter 7 in December 2009; foreclosure was pursued pre-bankruptcy.
Plaintiff disputed foreclosure with the bank before and during bankruptcy but did not list the claim on her bankruptcy schedules; her attorney and trustee knew of the dispute.
The bankruptcy discharge occurred in March 2010, and plaintiff filed the present action about a month later.
Defendants moved to dismiss for lack of standing, arguing the claim is an asset of the bankruptcy estate and not plaintiff’s.
The trial court granted the motion; the issue is whether the asset was abandoned or otherwise transferred to plaintiff giving standing.
Court affirms dismissal, holding unscheduled assets cannot be abandoned and the claim remained an asset of the estate.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does plaintiff have standing to sue as holder of a bankruptcy estate asset	Trustee abandonment could vest standing in plaintiff	Asset belongs to the bankruptcy estate, not plaintiff	No standing; asset belonged to estate
Was the claim abandoned by the bankruptcy trustee to confer standing	Trustee’s non-listing or abandonment implies possession	Unscheduled assets cannot be abandoned; knowledge alone insufficient	Unschedule asset cannot be abandoned; no standing
Did pre-bankruptcy knowledge of the dispute affect vesting of the asset in plaintiff	Knowledge by plaintiff/trustee should shift asset to plaintiff	Asset remains property of estate regardless of knowledge	Estate asset; plaintiff lacks standing

Bauer v Commerce Union Bank, 859 F.2d 438 (6th Cir. 1988) (debtor’s causes of action belong to the estate; standing rules apply to estate assets)
Kuriakuz v Community Nat’l Bank of Pontiac, 107 Mich App 72 (1981) (unscheduled assets cannot be abandoned; trustee’s knowledge does not create standing)
Miller v Chapman Contracting, 477 Mich 102 (2007) (assets known before bankruptcy become estate assets; scheduling matters)