Keathley v. Buddy Ayers Construction, Inc. · ¶22

Sometimes, as happened here, a debtor seeks to litigate a claim against a third party that he failed to disclose in his bankruptcy proceedings. Some lower courts apply judicial estoppel to bar such lawsuits, reasoning that application of the doctrine “raises the cost of lying” and “induces debtors to be truthful in their bankruptcy filings.” Cannon-Stokes v. Potter, 453 F. 3d 446, 448 (CA7 2006) (internal quotation marks omitted).

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