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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 18817
Experience:  B.A.; M.B.A.; J.D.
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If a creditor, with a judgment, is no longer qualified to do

Resolved 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?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 5 years ago.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

What did you mean by no longer qualified to do business?

Is the business no longer in existence?

Has business filed article of dissolution with the Secretary of State's office?
Customer: replied 5 years ago.
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.
Expert:  Phillips Esq. replied 5 years ago.

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).

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