Involuntary Bankruptcy Might Not Be the Right Tool for Aggrieved Creditors—What to Consider Before Taking Action
May 4, 2022
Involuntary bankruptcy may preserve or create value for creditors under certain circumstances, but there are other considerations that creditors should take into account when deciding whether to pursue an involuntary bankruptcy for a debtor in default. Among other considerations, petitioning creditors should consider the potential liability for costs in the event of dismissal of the involuntary case.
A recent article co-written by Partner Lisa Vandesteeg and published in the American Bankruptcy Institute Journal discusses the considerations creditors should examine when assessing whether to proceed with the involuntary bankruptcy option of debt recovery. Click here to read the full article.