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Prior to 2005, most courts had ruled that a dispute as to a portion of a creditor's claim did not give rise to a "bona fide dispute" that disqualified the creditor from seeking involuntary bankruptcy relief, This rule was based on Congress' stated intent that the purpose of Section 303(b)(1)'s limitation was "to prevent creditors from using involuntary bankruptcy as a club to coerce a debtor to pay debts as to which the debtor, in good faith, had legitimate defenses."
If the value of the security is less than the creditor's claim, the liquidator may convey the property to him and he is entitled to participate in the proceedings to the extent of his unpaid claim.
Robson, who testified to defend the 'Thriller' singer when he was accused of molestation in 2005, has alleged in a creditor's claim he was abused by the late singer for a seven-year period from the age of seven, Contactmusic reported.
The deadline has passed for creditors to file claims against the estate, but Wade is asking the probate court to allow him to file a late creditor's claim.
* Fraudulent Conversion and Transfer Laws--Under Florida law, a conversion by a debtor of a nonexempt asset to an exempt asset is a fraudulent conversion as to a creditor, which may be set aside by such creditor "whether the creditor's claim to the asset arose before or after the conversion of the asset, if the debtor made the conversion with the intent to hinder, delay, or defraud the creditor." (8) The relevant queries are as follows: 1) Does the conversion to a Roth IRA constitute a "conversion" to which Florida's fraudulent conversion law applies, and 2) with regard to creditors' claims arising before and after the Roth IRA conversion, did the debtor engage in the conversion with the actual intent to hinder, delay, or defraud such creditors?
1.368-1(e)(6)(i), a creditor's claim against a target corporation may represent a proprietary interest if the target is in a title 11 or similar bankruptcy case or if the target is insolvent immediately prior to the reorganization.
The last day to file a creditor's claim against the firm is Nov.
One family member may gift assets to another family member who is not likely to be subject to a creditor's claim. This may result in gift tax and also results in the loss of control over the gifted asset, as well as the economic benefit of that asset.
Doing so increases the face value of a trade creditor's claim for a given level of borrowing, th ereby increasing the "liquidation bang" from each trade credit buck, This combined priority structure maximizes social welfare by reducing the firm's overall cost of funding.
Depending on the assets transferred to fund the FLP, the purpose and nature of the transfer of these assets, the applicable state law governing limited partnerships and the court in which a creditor's claim is brought, the level of protection may be reduced or eliminated.
A better approach is to require the alleged creditor to introduce evidence to the plan trustee of the employer's insolvency and the specifics of the creditor's claim. As a safeguard against spurious creditor's claims, a grace period should also be established to permit the employer to confirm its solvency or rebut the purported creditor's claim before the trustee is obliged to suspend payments.