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§ 303(b)

In re C.W. Mining Co.

Ruling
Creditor that did not receive involuntary debtor's check for balance of debt until after petition date was an eligible petitioning creditor.
Procedural posture

One of the three creditors that filed an involuntary bankruptcy petition against the putative debtor, moved for partial summary judgment regarding their eligibility to commence the involuntary case, based upon their holding undisputed claims against the debtor, under 11 U.S.C.S. § 303(b). The debtor argued that it had tendered payment in full to one of the three creditors, and that its claim was thus not bona fide.

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Commercial opinion summary, case decided on September 17, 2008 , LexisNexis #1208-107

In re Brodowski

Ruling
Negative equity in 910 vehicle loan was not secured by purchase money security interest and not protected from bifurcation under hanging paragraph.
Procedural posture

A creditor of a chapter 13 debtor objected to confirmation of the debtor's chapter 13 plan, which proposed to bifurcate the creditor's claim under 11 U.S.C.S. § 506, on the grounds that the hanging paragraph at the end of 11 U.S.C.S. § 1325 did not permit the debtor to cram down its claim.

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Consumer opinion summary, case decided on July 22, 2008 , LexisNexis #1008-003

In re Rambo Imaging LLP

Ruling
Involuntary petition dismissed where required "general partner" was acutally a limited partner who lacked standing.
Procedural posture

Petitioner creditor, a partnership, filed a petition under chapter 7 of the Bankruptcy Code, seeking an order requiring another partnership (alleged debtor) to undergo bankruptcy. Petitioner doctor joined the first partnership's action, claiming that he was a general partner of the alleged debtor who had standing under 11 U.S.C.S. § 303(b)(3). The alleged debtor filed a motion to dismiss the petitioners' amended petition.

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Commercial opinion summary, case decided on July 15, 2008 , LexisNexis #1008-021

Trusted Net Media Holdings LLC v. Morrison Agency Inc. (In re Trusted Net Media Holdings LLC)

Ruling
Requirements for filing an involuntary petition must be satisfied for the court to have subject matter jurisdiction.
Procedural posture

Appellant debtor challenged a judgment from the District Court for the Northern District of Georgia affirming a bankruptcy court's denial of the debtor's motion to dismiss appellee creditor's involuntary bankruptcy petition, filed under 11 U.S.C.S. § 303(b), for lack of subject matter jurisdiction.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on April 23, 2008 , LexisNexis #0508-058

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

Riverview Trenton R.R. v. DSC Ltd. (In re DSC Ltd.)

Ruling
Bankruptcy court did not err in setting joinder deadline in involuntary case resulting in dismissal for insufficient number of creditors.
Procedural posture

Appellants challenged the decision of the District Court for the Eastern District of Michigan that affirmed the decision of the bankruptcy court that dismissed an amended involuntary petition for bankruptcy due to the lack of a sufficient number of qualified creditors under 11 U.S.C. § 303(b)(1).

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on May 23, 2007 , LexisNexis #0607-081

In re Downstate News Group Inc.

Ruling
Motion to dismiss involuntary case was granted since creditor had failed to show that claims were not subject of bona fide dispute.
Procedural posture

The creditors filed an action pursuant to 11 U.S.C. § 303(b)(1) against the debtor to commence an involuntary case of bankruptcy under chapter 7. The debtor filed a motion to dismiss.

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opinion summary, case decided on May 31, 2006 , LexisNexis #0606-071

Metz v. Dilley (In re Dilley)

Ruling
Debtor's not guilty plea in a criminal case was not sufficient to demonstrate a bona fide dispute as to liability regarding the creditor's claims.
Procedural posture

Appellants, petitioning creditors, sought review of an order of the Bankruptcy Court for the District of Maine that dismissed, on summary judgment, the involuntary petition on the grounds that the petitioning creditors'claims were the subject of a bona fide dispute as to liability within the meaning of 11 U.S.C. § 303(b)(1).

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 16, 2006 , LexisNexis #0306-114

In re Euro-American Lodging Corp.

Ruling
Creditor sustained burden of proof on involuntary petition where debtor had no more than eight bona fide creditors as of petition date.
Procedural posture

A creditor (mortgagee) filed an involuntary chapter 7 case, 11 U.S.C. § 303(b), against an alleged debtor, its mortgagor. The matter was before the court for a ruling following a three-day bench trial. The alleged debtor opposed the petition.

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opinion summary, case decided on January 09, 2006 , LexisNexis #0207-073