Is a bankruptcy trustee obligated to intervene in a pending action by or against the bankrupt?
California, United States of America
The following excerpt is from Bowles v. Pacific Commissary Co., 18 Cal.Rptr. 838, 199 Cal.App.2d 438 (Cal. App. 1962):
'Shivell v. Hurd, 115 Cal.App.2d 405, 406, 252 P.2d 62, 63: 'While it is true that all rights of action in favor of the bankrupt on contract vest in the trustee by virtue of the bankruptcy act, it is well settled that a trustee is not obligated to intervene in pending actions by or against the bankrupt. He may allow them to proceed without intervention and accept the fruits if successful. [Citations.]'
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