Legal Question in Bankruptcy in Texas
Non resident alien
Can a non resident alien living in Texas and operating a business declare chapter 7 or 11?
Can that same person be forced into involuntary bankrupcy?
How many distinct creditors does it take to force a bankrupcy? Can one physical person with separate debts be considered more than one creditor?
Will foreign assets have to be listed on the schedules? Can they be attached?
If the person leaves the country, can his US assets be attached and recovered?
1 Answer from Attorneys
Re: Non resident alien
Yes you may file for bankruptcy. Sec.303 of the Bankruptcy Code provides that three or more entities holding claims aggregating more than $10,775 must join together to force a person into a Chap. 7 or 11. If there are less than 12 holders of claims, then 1 or more entities holding cliams exceeding $10,775 may commence a case. The language of this section, I believe, makes it clear that the same creditor holding multiple claims is counted as only one entity for purposes of filing a involuntary bankruptcy. Foreign assets are subject to the jurisdiction of the bankruptcy court and must be listed on the schedules if the debtor has an interest in them. A creditor with a judgement could probably attach foreign assets under the laws of the location of the assets. US assets could be attached, provided the debtor was given due process, that is notice given if possible and state laws followed for collection and seizure of assets.
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