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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15868
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Im looking for an attorney to file an involuntary liquidation

Resolved Question:

I'm looking for an attorney to file an involuntary liquidation action on behalf of myself and a number of other creditors of a Delaware registered company operating in Georgia where we are aware of an attempt within the last 60 days to transfer all assets out of the company under the terms of a secured debt agreement. Is this a hopeless task and if not how much are we likely to face for fees etc.? Alternatively, can we file ourselves and if so, what form should we be completing
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 1 year ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

WALLSTREETESQ :

Our service does not provide such services, however we can tell you that you can file an involuntary bankruptcy petition against a company for their actions,

WALLSTREETESQ :

However, it is difficult and will cost a significant amount of money,

WALLSTREETESQ :

expect $2500-$10,000 in legal fees,

Customer:

Can you explain the timing of payment of such fees i.e. are they deposited or are they accrued over time?

WALLSTREETESQ :

The legal requirements for filing an involuntary bankruptcy petition are outlined in Section 303(b) of U.S. Title 11:




  1. The creditors filing the petition must have total outstanding, unsecured debt of at least $14,425. Where there are 12 or more creditors, three unsecured creditors claims totaling at least $14,425 that do not involve any bona fide disputes must participate in the involuntary petition. Where there are fewer than 12 creditors, a single unsecured creditor may file as long as the claim has no bona fide disputes and is an amount of $14,425 or more. The rules regarding partnerships are somewhat different (see Section 303(b)(3) of the Bankruptcy Code).




  2. The debts must not be contingent or involve bona fide disputes. “Bona fide disputes” were defined in the 2005 BAPCPA amendment to Section 303(b) as disputes relating to liability for or the amount of the claim



WALLSTREETESQ :

The process for filing an Involuntary Bankruptcy Petition is as follows:




  1. Filing the Documents. The creditor/s first determine whether to file as a Chapter 7 (liquidation) or a Chapter 11 (reorganization). They then file Form B5 and a summons with the U.S. Bankruptcy Court clerk in the debtor’s locale. The B5 form must be completed, accurate and signed by the petitioning creditor/s or their attorneys. The filing fee is paid by the creditors, who are also responsible for ensuring that the petition is filed on the debtor in a timely manner. A process server is generally hired to accomplish this.




  2. Debtor Objection. The debtor has 20 days from the date of filing to object to the Petition. If the objection is not filed, then the petitioning creditors automatically win and the Bankruptcy 7 or 11 proceeds in the normal manner.




  3. Court Hearing. If an objection is filed, both sides are granted a hearing to present their cases.




  4. Court Decision. For the court to find in favor of the creditors and issue an order of relief against the debtor, it must find that:



    1. the debtor is not generally paying its debts as they come due; and

    2. the creditor’s petition was made in good faith.


    If the creditor wins, the debtor is forced into bankruptcy and the case proceeds as a normal Chapter 7 or Chapter 11. If the debtor wins, the petition for bankruptcy is denied and the petitioning creditors may have to pay the debtor’s legal costs and damages.


    The court can also abstain from the matter or, if it feels the best interests of the creditors and the debtor would be better served by a dismissal or suspension, dismiss the case out of hand.



WALLSTREETESQ :

In terms of fees, most attorneys would ask for a retainer up front, and bill by the hour,

Customer:

We comply with all of the above - total debts amount to in excess of $0.5 million owed to approx 14 members of staff

WALLSTREETESQ :

they may ask for 2500-$5000 up front,

WALLSTREETESQ :

It may be possible to file such a petition, however it must start as soon as possible,

WALLSTREETESQ :

What you may want to do is hire an investigator now, to make sure you can track the assets that are being taken out of the company

Customer:

We know exactly where the assets are - all we need is a keen bankruptcy lawyer to pursue our case in Georgia North Bankruptcy Court

WALLSTREETESQ :

You can go to the link above and find the best creditor attorneys in your area,

WALLSTREETESQ :

you will need an experienced creditor bankruptcy attorney,

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied with our service please provide us with positive feedback.

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15868
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you

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