Article: Involuntary bankruptcy: the last word on when the dispute is bona fide!(Selected Topic)

Introduction

The filing of an involuntary bankruptcy petition is among the most powerful weapons in the creditor's arsenal to halt the recalcitrant debtor who will not--or cannot--make payment on account of outstanding invoices or judgments. If successful, it allows the appointment of a trustee to liquidate the debtor's assets and distribute the proceeds to creditors. It also allows creditors, through the trustee, to find out whether assets have been diverted and to recover the diverted assets for the benefit of all creditors.

However, as credit managers know, the use of any powerful legal weapon is rarely without its fair share of potential pitfalls. In ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!