Bankruptcy and partnerships
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Can one partner of 3 file for involuntary bankruptcy in PA?
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Bankruptcy within partnerships is assessed.
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Here is the question and it doesn't really say but has the location listed so I thought it might be state. I have read and read and about all I see is that the creditor is the one who files the involuntary. In March 1988, Daniel E. Beren, John M. Elliot, and Edward, F. Mannino formed Walnut Street Four, a general partnership, to purchase and renovate an office building in Harrisburg, Pennsylvania. They borrowed more than $200,000 from Hamilton Bank to purchase the building and begin renovation.
Disagreements among the partners arose when the renovation costs exceeded their estimates. When Beren was unable to obtain assistance from Elliot and Mannino regarding obtaining additional financing, the partnership quit paying its debts. Beren filed an involuntary petition to place the partnership into Chapter 7 Bankruptcy. The other partners objected to the bankruptcy filing. At the time of the filing, the partnership owed debts of more than $380,000 and had approximately $550 in the partnership bank account. Should the petition for involuntary bankruptcy be granted? Explain
The above facts are very important for our analysis.
Under the new bankruptcy code (new as in it has changed since I graduated from law school less than a decade ago), a creditor with a claim of more than approximately $12,000 can file a petition for involuntary bankruptcy.
Congress imposed several requirements to compel an involuntary bankruptcy. First, each filing ...
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