Upon the filing of a voluntary bankruptcy petition, all property which a debtor owns, including claims and causes of action, vests in the bankruptcy estate. Thus, when plaintiff filed for bankruptcy, her claims against defendants became property of the bankruptcy estate and only the trustee had standing to commence and prosecute the claims in the instant action.
Since this action was commenced by a party without standing to sue, dismissal is required. This flaw cannot be cured by a simple amendment substituting the trustee in place and stead of plaintiff debtor. The dismissal, however, is without prejudice, and the parties' arguments concerning CPLR 205(a) are premature until such a time as the trustee commences an action.
Messer v. Hughes, NY Slip Op 05309 (1st Dep't October 29, 2024)
