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§ 303

In re Taub

Ruling
Petitioning creditor's second involuntary petition against debtor dismissed due to bona fide dispute.
Procedural posture

One creditor, a former tenant of the creditor, brought a second involuntary Chapter 7 bankruptcy petition against the debtor, asserting a claim in the amount of $200,000. The debtor moved to dismiss the petition, and for an award of attorney's fees and costs pursuant to 11 U.S.C.S. § 303(i).

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Consumer opinion summary, case decided on October 28, 2010 , LexisNexis #1110-108

In re Smith

Ruling
Order for relief in involuntary case was proper where state court's failure to specify interest rate in judgment did not create a bona fide dispute.
Procedural posture

A creditor filed an involuntary bankruptcy petition against an alleged debtor after the creditor obtained a summary judgment against the debtor based on a guaranty obligation, and the bankruptcy court determined that the debt was not subject to bona fide dispute. Upon remand from the District Court for the Northern District of Texas, the bankruptcy court considered a state appellate ruling that the summary judgment was not final.

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Consumer opinion summary, case decided on October 12, 2010 , LexisNexis #1110-073

In re Selectron Mgmt. Corp.

Ruling
Involuntary petition dismissed as relating to a two-party dispute.
Procedural posture

An involuntary chapter 7 petition was filed against an alleged debtor by a petitioning creditor pursuant to 11 U.S.C.S. § 303. The alleged debtor asserted that the matter was a two- party dispute that did not belong before the bankruptcy court and also denied that the petitioning creditor was the holder of a claim. To cure this infirmity, counsel for the petitioning creditor filed a joinder by the alleged proper holder of the claim.

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Commercial opinion summary, case decided on September 27, 2010 , LexisNexis #1110-001

In re TRED Holdings LP

Ruling
Petitioning creditors assessed fees and costs for filing involuntary case against debtor to prevent foreclosure.
Procedural posture

Petitioning creditors filed an involuntary petition under Chapter 7 of the Bankruptcy Code, seeking an order forcing an alleged debtor into bankruptcy. The debtor obtained an order dismissing the petition, and it asked the court for an award of actual and punitive damages, pursuant to 11 U.S.C.S. § 303(i).

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Commercial opinion summary, case decided on September 03, 2010 , LexisNexis #1010-106

In re FKF Madison Park Group Owner LLC

Ruling
No bar to joinder of additional creditors exists in involuntary cases regardless of good faith of petitioning creditors.
Procedural posture

Alleged debtors filed motions to dismiss the involuntary bankruptcy petitions (IPs) filed by four creditors. Additional creditors joined in the IPs. The alleged debtors argued that the IPs should be dismissed as they had been filed in bad faith and that the bar to joinder doctrine should be applied to the case. Consideration was given specifically to the joinder issue.

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Commercial opinion summary, case decided on September 03, 2010 , LexisNexis #1010-005

In re Soderberg & Schafer CPAS LLC

Ruling
Involuntary petition upheld where appeal which debtor had filed to seek stay was not subject to bona fide dispute.
Procedural posture

Petitioner creditor filed an involuntary chapter 7 petition under 11 U.S.C.S. § 303 against respondent debtor, a limited liability company (LLC). The debtor filed its answer contesting the allegations of the petition, and the court held an evidentiary hearing.

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Commercial opinion summary, case decided on August 06, 2010 , LexisNexis #0910-106

In re Jacques

Ruling
Dismissal of involuntary petition denied where petitioning creditor met burden and conversion to voluntary chapter 13 case denied as debtor was not qualified.
Procedural posture

A debtor filed a motion to convert an involuntary petition commenced against him under Chapter 7 to a voluntary petition under chapter 13. Alternatively, he sought dismissal of the involuntary petition, alleging that it was filed against him improperly and in bad faith. The debtor also counterclaimed against the petitioning creditor, seeking damages for embarrassment and defamation and an order requiring her to post a bond to indemnify him.

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Consumer opinion summary, case decided on July 23, 2010 , LexisNexis #0910-071

In re Staxxring Inc.

Ruling
Involuntary case dismissed where only two petitioning creditors had claims not subject to bona fide dispute.
Procedural posture

The court held a hearing on the Motion to Dismiss Involuntary Petition filed by Alleged Debtor. On the other side of the Motion were the Petitioning Creditors.

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Commercial opinion summary, case decided on May 28, 2010 , LexisNexis #0910-002

In re Starlite Houseboats Inc.

Ruling
Involuntary case dismissed due to improper service and bona fide dispute as to judgment claim of one petitioning creditor.
Procedural posture

Three creditors of the debtor corporation filed an involuntary chapter 7 petition pursuant to 11 U.S.C.S. § 303. The debtor filed a motion to dismiss for lack of proper service under Kan. Stat. Ann. § 60-204 Fed. R. Civ. P. 4(h), and a motion for dismissal of the petition or abstention.

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Commercial opinion summary, case decided on March 23, 2010 , LexisNexis #0610-073

In re Tamarack Resort LLC

Ruling
Dismissal of involuntary petition denied where petitioning creditors were qualified and debtor was not paying debts as they became due.
Procedural posture

An involuntary petition was filed against debtor by petitioning creditors. Another creditor joined in the petition. Debtor answered and contested the petition. Debtor also asked, should the petition be dismissed, that the court award attorney's fees under 11 U.S.C.S. § 303(i)(1) and impose punitive damages under § 303(i)(2)(B).

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Commercial opinion summary, case decided on March 17, 2010 , LexisNexis #0610-071