11th Circ. Wallops Involuntary Bankruptcy Petitioners

Law360, New York (May 1, 2015, 4:45 PM EDT) -- Pursuant to Section 303 of the United States Bankruptcy Code, 11 U.S.C. §§ 101-1532, an involuntary petition can be filed against a debtor by three entities that hold claims that are matured, not contingent as to liability or disputed, and which total, in the aggregate, at least $15,325. If there are fewer than 12 creditors, any single entity that holds a qualifying claim may file the petition. However, Bankruptcy Code Section 303(i) also provides that if an involuntary petition is dismissed other than on consent of all of the petitioners and the debtor, and the debtor does not waive the right to judgment, the debtor can recover from the petitioners' costs or attorneys' fees, and, in the case of a petition filed in bad faith, damages proximately caused by the filing and punitive damages....

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