Filing an involuntary bankruptcy petition is fraught with risk. If the court dismisses the involuntary petition, the creditors who filed the petition (referred to as the petitioning creditors) may be liable for damages caused by the filing and even punitive damages. A recent opinion from the District Court for the District of Nevada in State … Continue Reading
In a prior post, we explored the risks of utilizing an involuntary bankruptcy petition as a litigation tactic. That post examined a July 2015 decision from the Second Circuit Court of Appeals in the TPG Troy LLC bankruptcy case, in which the court held that when an involuntary bankruptcy petition is dismissed there is a … Continue Reading
