Marco Cantu v. Michael Schmidt

GREGG COSTA, Circuit Judge:

In bankruptcy, as in life, timing can be everything. After their bankruptcy was converted from a chapter 11 reorganization to a chapter 7 liquidation, Marco and Roxanne Cantu sued their bankruptcy attorney Ellen Stone for causes of action related to her representation prior to the conversion of their case. The chapter 7 trustee, Michael Schmidt, intervened in the action against Stone contending that the claims belonged to the estate. The parties eventually settled the malpractice case and the funds were deposited into the court registry pending a determination…