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§ 303(b)(1)

In re TPG Troy LLC

Ruling
Involuntary case dismissed due to numerous contested issues.
Procedural posture

Alleged debtors filed a motion to dismiss involuntary chapter 7 cases filed against them by petitioning creditors (petitioners) on the grounds, inter alia, that petitioners failed to meet their burden under 11 U.S.C.S. § 303(b)(1). The alleged debtors also argued that the court should abstain under 11 U.S.C.S. § 305(a)(1) and sought fees, costs, and damages under 11 U.S.C.S. § 303(i).

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Commercial opinion summary, case decided on May 09, 2013 , LexisNexis #0513-108

Marciano v. Chapnick (In re Marciano)

Ruling
Unstayed, non-default judgment that was on appeal was not subject to bona fide dispute so as to defeat involuntary petition.
Procedural posture

Alleged debtor appealed a decision of the U.S. Bankruptcy Appellate Panel for the Ninth Circuit, which affirmed a bankruptcy court decision granting petitioning creditors' motion for summary judgment on its involuntary petition.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on February 27, 2013 , LexisNexis #0313-075

In re Stillwater Asset Backed Offshore Fund Ltd.

Ruling
Dismissal of involuntary petition denied where ineffective distribution in kind did not satisfy debts of petitioning creditors or create a bona fide dispute.
Procedural posture

Petitioning creditors filed an involuntary chapter 11 case against the alleged debtor. The alleged debtor contested the involuntary petition, seeking an order, pursuant to 11 U.S.C.S. §§ 105(a), 303, and 305, (i) dismissing the petition, (ii) imposing sanctions against the petitioning creditors, and (iii) scheduling a damages hearing and directing the petitioning creditors to post a bond pending such hearing.

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Commercial opinion summary, case decided on January 17, 2013 , LexisNexis #0213-038

In re Miller

Ruling
Twelve clearly undisputed loans were sufficient basis for filing involuntary petition.
Procedural posture

A bank filed an involuntary petition under chapter 7 of the Bankruptcy Code, seeking an order placing an individual debtor into bankruptcy. The debtor opposed the bank's petition, claiming that the bank did not meet the qualifications imposed by 11 U.S.C.S. § 303(b)(1) to be a petitioning creditor. The debtor filed a motion for summary judgment.

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Consumer opinion summary, case decided on December 07, 2012 , LexisNexis #0113-036

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 BLX Group Inc.

Ruling
Dismissal of transfer of involuntary case denied where petitioning creditors were qualified and primary asset was located in district.
Procedural posture

Movant, the divorced former shareholder of the debtor, brought an expedited motion to dismiss the involuntary petition brought against the debtor for lack of subject matter jurisdiction because two of the petitioning creditors were not qualifying creditors under 11 U.S.C.S. § 303(b)(1), , alternatively, to transfer venue to the Central District of California, pursuant to 28 U.S.C.S. § 1412.

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Commercial opinion summary, case decided on October 15, 2009 , LexisNexis #1209-003

In re La Stanza Diva Ristorante Inc.

Ruling
Involuntary case dismissed as petition was not supported by requisite number of creditors with undisputed claims.
Procedural posture

The alleged debtor (AD) disputed the involuntary chapter 11 petition, pursuant to 11 U.S.C.S. § 303(b)(1), filed by the business manager and companies.

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Commercial opinion summary, case decided on April 10, 2009 , LexisNexis #0609-071

In re Glacken

Ruling
Court abstained from determining bona fide dispute in involuntary case.
Procedural posture

Three creditors commenced an involuntary chapter 7 case against an alleged debtor, who filed a motion to dismiss the involuntary petition on the grounds that the creditors were ineligible under 11 U.S.C.S. § 303(b)(1).

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Consumer opinion summary, case decided on February 23, 2009 , LexisNexis #0509-071

In re Mountain Dairies Inc.

Ruling
Involuntary petition dismissed due to inclusion of debts subject to bona fide dispute.
Procedural posture

After a creditor filed an involuntary petition against an alleged debtor, the debtor alleged that the creditor was an ineligible petitioning creditor pursuant to 11 U.S.C. § 303(b)(1).

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opinion summary, case decided on July 25, 2007 , LexisNexis #0807-107

In re Mylotte David & Fitzpatrick

Ruling
Involuntary petition filed by single creditor dismissal as debtor had more than eleven qualified creditor's and filing creditor's claim was subject to bona fide dispute.
Procedural posture

A petitioning creditor, an attorney who alleged he held claims for missed draw payments and unpaid monthly car allowance, filed an involuntary chapter 7 petition against the putative debtor, a law firm partnership. The putative debtor filed an answer in opposition to the petition, pursuant to Fed. R. Bankr. P. 1003(b), 1011, seeking its dismissal. Four other creditors filed requests to join in the petition pursuant to 11 U.S.C. § 303(c).

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opinion summary, case decided on July 12, 2007 , LexisNexis #0907-038