Hello,

When a debtor files for bankruptcy, the debtor's assets becomes the bankruptcy estate, and is under the legal control of the trustee while the case is open. The debtor may not sell, transfer, or dispose of any property without the permission of the trustee.

However, unless the property is valuable and is not exempt under bankruptcy law, the trustee will generally have no interest in it, and the debtor can do what he pleases with it.

An legal cause of action for money damages would be considered an asset of the filer and would then come under the control of the trustee.

I think your demurrer action would stand a good chance of succeeding as the LL now does not have legal control of the property and thus has no standing to proceed unless the bankruptcy trustee authorized him to act on behalf of the bankruptcy estate.

I hope this helps.

Thanks.

Matt

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