Tag Archives: Involuntary Petition

“A Bankruptcy Court Is Not A Collection Agency”: A Lesson On When Not To File An Involuntary Bankruptcy Petition

Many a bankruptcy attorney has been approached by an angry client who is owed a large amount from, or has obtained a judgment against another party, but has been frustrated in efforts to collect and wants to “throw them into bankruptcy.”  After trying to calm the client down, the attorney will go over the technical … Continue Reading

Litigants Beware: Filing an Involuntary Bankruptcy Could Make You a Debtor Rather than a Creditor

Last week, the Second Circuit Court of Appeals affirmed a decision by the Bankruptcy Court for the Southern District of New York in In re TPG Troy, LLC, 2015 U.S. App. LEXIS 12085 that awarded over a half-million dollars in legal fees and expenses to the subjects of an improper involuntary bankruptcy filing.  The Court’s decision … Continue Reading