Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you for your explanation: The company is a California LLC. It has not paid its California Franchise Tax. It has filed its Federal Tax Returns. It is no longer operating, It is just filing for Federal purposes. Your Question: If a creditor, with a judgment, is no longer qualified to do business, can it still be a creditor for filing an Involuntary bankruptcy petition? Response: Yes, the creditor can still be a part of the involuntary case. The creditor meets the definition of a creditor pursuant to 11 U.S.C. Section 101(10).