Partially Disputed Claim Is a Bona Fide Dispute and Cannot Support Involuntary Bankruptcy

Chairman and CEO Andy Kassner and Corporate Restructuring associate Joe Argentina co-wrote an article for The Legal Intelligencer titled “Partially Disputed Claim Is a Bona Fide Dispute and Cannot Support Involuntary Bankruptcy.” The article reviews a recently issued opinion from the U.S. Bankruptcy Court for the Central District of California that dismissed an involuntary bankruptcy case after disqualifying two of the four petitioning creditors. When a creditor commences a bankruptcy case against a debtor, the Bankruptcy Code requires that the petitioning creditor hold claims that are not subject to a “bona fide dispute.” However, as Andy and Joe discuss in their article, case law offers conflicting views of what constitutes a bona fide dispute, so practitioners need to proceed with caution when advising clients on filing an involuntary bankruptcy petition.

Read "Partially Disputed Claim Is a Bona Fide Dispute and Cannot Support Involuntary Bankruptcy."