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Written by:

Scott G


Date added:

June 7, 2016







No of pages / words:

2 / 409


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In a case where the debtor has fewer than 12 creditors, one creditor may initiate an involuntary petition, but the creditor must have an unsecured claim of at least $10,000, which is not subject to a bona fide dispute. A "bona fide dispute" may involve a reasonable issue of whether the debtor is liable on the debt, probably more than a subjective belief by the debtor...
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When Creditors holding claims against a debtor may under certain circumstances, initiate a Chapter 7 or Chapter 11 case by filing an involuntary petition against the debtor. Creditors, as a group, may sometimes gain by causing an involuntary filing. Where the debtor is dissipating assets, an involuntary bankruptcy may prevent further losses...
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