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In re Bethany Homes Inc.

Judgment creditors of a bankruptcy debtor sought to hold the debtor in contempt in state court for failing to cooperate in discovery in the creditors' efforts to collect the judgment, but the motion was stayed after the debtor filed its bankruptcy petition. The creditors moved for sanctions pursuant to Fed. R. Bankr. P. 9011 against the debtor, its principal, and its attorney, asserting that the bankruptcy petition was filed in bad faith.
Frivolous filing to prevent foreclosure was grounds for sanctions against debtor's principal and attorney.
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Commercial case opionion summary, case decided on August 06,2010, LexisNexis #0910-138