Legal Question in Bankruptcy in California

Involuntary bankruptcy

I am owed a large sum(6 figures) by a company that is about to be taken into involuntary bankruptcy. I am not a part of the petition. Will I get the same protection as the creditors that are filing the petition? Is it possible that the company may make a deal with the petioners, avoiding the filing, that prevents me from collecting my debt, or lessens the amount I might collect? Should I join the filing. What are the reasons to join or not to join the filing?


Asked on 3/06/03, 1:42 pm

2 Answers from Attorneys
Alvin Tenner Law Office of Alvin G. Tenner

Re: Involuntary bankruptcy

Bankruptcy, reduces the amount a creditor receives. You will be given notice of all hearings and a chance to object to any settlement.

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Answered on 3/06/03, 1:57 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Involuntary bankruptcy

Thanks for your posting.

You've asked for your reasons to join or not join, but I don't think you have this choice. Either you participate by verifying your debt through a proof of claim, as a creditor, or you might face receiving nothing in an eventual liquidation or reorganization.

Because the bar of bankruptcy stops you from taking any action to collect a debt, if you do not participate, you cannot sue or demand payment while in bankruptcy, and may find nothing to collect or that you are barred from collecting after bankruptcy.

I hope this helps, but if you'd like representation, or want additional information or other questions answered, please feel free to email me directly at [email protected]. Best of luck.

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Answered on 3/06/03, 4:50 pm


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