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Second Circuit Rejects Use of Involuntary Bankruptcy Petition As Collection Tool

A bankruptcy court properly dismissed a creditor's involuntary bankruptcy petition “for cause” when it “would serve none of the Bankruptcy Code's goals or purposes … and [when] the sole [petitioning] creditor is not substantially prejudiced by remedies available under state law,” held the U.S. Court of Appeals for the Second Circuit in </i>In re Murray.</i>

11 minute read November 01, 2018 at 12:05 AM
By
Michael L. Cook
Second Circuit Rejects Use of Involuntary Bankruptcy Petition As Collection Tool

A bankruptcy court properly dismissed a creditor's involuntary bankruptcy petition “for cause” when it “would serve none of the Bankruptcy Code's goals or purposes … and [when] the sole [petitioning] creditor is not substantially prejudiced by remedies available under state law,” held the U.S. Court of Appeals for the Second Circuit on August 14, 2018.

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