“Special Circumstances” did not Save a 12 Year Old Involuntary Case

In Popular Auto, Inc. v. Reyes-Colon (In re Reyes-Colon), Nos. 17-1971, 17-1972, 2019 WL 1785039 (1st Cir. April 24, 2019), the First Circuit recently ruled that “special circumstances” does not authorize a bankruptcy court to use its equitable powers to contravene the numerosity requirement for an involuntary petition under section 303(b)(1) of the Code.  This twelve year dispute did not […]

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by H. Joseph Acosta, Esq.

Creditors with Partially Disputed Claims Have Standing to File an Involuntary Bankruptcy

Section 303 of the Bankruptcy Code provides a unique remedy to unsecured creditors seeking to collect their debts against an insolvent entity.  A careful look at this remedy is contained in an earlier post, entitled Creditors’ Strategic Use of Involuntary Bankruptcy.  In summary, pursuant to section 303, three unsecured creditors, with claims in the aggregate of […]

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by H. Joseph Acosta, Esq.