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Levey v. Kesser Cleaners Corp.

Levey v. Kesser Cleaners Corp.

Ruling
Creditor's attorney properly sanctioned for filing involuntary petition where it was unreasonable to believe creditor's claim was not subject to bona fide dispute.
Procedural posture

Appellant, a creditor's former attorney, sought review of an order of the bankruptcy court sanctioning appellant for violating Fed. R. Bankr. P. 9011. The bankruptcy court found that appellant filed a chapter 11 involuntary petition to obtain an advantage over a debtor in other litigation and that it was objectively unreasonable to believe that the debtor was subject to involuntary bankruptcy.

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opinion summary, case decided on July 27, 2007 , LexisNexis #0807-140