Commercial Collections Blog

A Few Defensive Tips Debtors May Use When An Involuntary Bankruptcy Petition is Filed

When an involuntary bankruptcy petition is filed against a company it is important to understand a few of the principal approaches the debtor may make use of to defend against that petition. The debtor’s first responsibility is to avoid having to give up any of its assets. The debtor has twenty days to file a  against the creditor or creditors filing the petition. All it takes is one  filed within that time period, to guarantee the case moves before the court. Then, as an attempt to prove the involuntary petition is not justified, the debtor may try to show the court that, despite earlier troubles, its business is improving. And of course the debtor will try to show that the creditor or creditors filing the petition are doing so in order to gain favor over other creditors.

Always remember, if an involuntary petition is dismissed against a debtor, the creditor or creditors filing the petition could be held liable for a lot more than attorneys’ fees. So tread lightly and discuss the filing of an involuntary petition against a debtor with an experienced creditor’s rights attorney before moving forward.

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