(a) An involuntary case may be commenced only under chapter
7 or 11 of
this title, and only against a person, except a farmer, family farmer, or a
corporation that is not a moneyed, business, or commercial corporation, that
may be a debtor under the chapter under which such case is commenced.
(b) An involuntary case against a person is commenced
by the filing with the bankruptcy court of a petition under chapter
7 or 11 of
this title—
(1) by three or more entities, each of which is either a holder of a
claim against such person that is not contingent as to liability or the
subject of a bona fide dispute as to liability or amount,
or an indenture trustee representing such a holder,
if such noncontingent, undisputed claims aggregate at
least $10,000 [
Adjusted every 3 years by section
104.] more than the value of any lien on property of the debtor
securing such claims held by the holders of such claims;
(2) if there are fewer than 12 such holders, excluding any employee or
insider of such person and any transferee of a transfer that is voidable
under section
544, 545,
547, 548,
549,
or 724(a)
of this title, by one or more of such holders that hold in the aggregate at
least $10,000 [
Adjusted every 3 years by section
104.] of such claims;
(3) if such person is a partnership—
(A) by fewer than all of the general partners in such partnership; or
(B) if relief has been ordered under this title with respect to all of
the general partners in such partnership, by a general partner in such
partnership, the trustee of such a general partner, or a holder of a claim
against such partnership; or
(4) by a foreign representative of the estate in a foreign proceeding
concerning such person.
(c) After the filing of a petition under this section
but before the case is dismissed or relief is ordered, a creditor holding an
unsecured claim that is not contingent, other than a creditor filing under
subsection (b) of this section, may join in the petition with the same effect
as if such joining creditor were a petitioning creditor under subsection (b)
of this section.
(d) The debtor, or a general partner in a partnership
debtor that did not join in the petition, may file an answer to a petition
under this section.
(e) After notice and a hearing, and for cause, the
court may require the petitioners under this section to file a bond to
indemnify the debtor for such amounts as the court may later allow under
subsection (i) of this section.
(f) Notwithstanding section
363 of this title, except to the extent that the court orders otherwise,
and until an order for relief in the case, any business of the debtor may
continue to operate, and the debtor may continue to use, acquire, or dispose
of property as if an involuntary case concerning the debtor had not been
commenced.
(g) At any time after the commencement of an
involuntary case under chapter
7 of this title but before an order for relief in the case, the court, on
request of a party in interest, after notice to the debtor and a hearing, and
if necessary to preserve the property of the estate or to prevent loss to the
estate, may order the United States trustee to appoint an interim trustee
under section
701 of this title to take possession of the property of the estate and to
operate any business of the debtor. Before an order for relief, the debtor may
regain possession of property in the possession of a trustee ordered appointed
under this subsection if the debtor files such bond as the court requires,
conditioned on the debtor’s accounting for and delivering to the trustee, if
there is an order for relief in the case, such property, or the value, as of
the date the debtor regains possession, of such property.
(h) If the petition is not timely controverted, the
court shall order relief against the debtor in an involuntary case under the
chapter under which the petition was filed. Otherwise, after trial, the court
shall order relief against the debtor in an involuntary case under the chapter
under which the petition was filed, only if—
(1) the debtor is generally not paying such debtor’s debts as such
debts become due unless such debts are the subject of a bona fide dispute;
or
(1) the debtor is generally not paying such debtor's debts as such debts
become due unless such debts are the subject of a bona fide dispute as
to liability or amount; or
(2) within 120 days before the date of the filing of the petition, a
custodian, other than a trustee, receiver, or agent appointed or authorized
to take charge of less than substantially all of the property of the debtor
for the purpose of enforcing a lien against such property, was appointed or
took possession.
(i) If the court dismisses a petition under this
section other than on consent of all petitioners and the debtor, and if the
debtor does not waive the right to judgment under this subsection, the court
may grant judgment—
(1) against the petitioners and in favor of the debtor for—
(A) costs; or
(B) a reasonable attorney’s fee; or
(2) against any petitioner that filed the petition in bad faith, for—
(A) any damages proximately caused by such filing; or
(B) punitive damages.
(j) Only after notice to all creditors and a hearing
may the court dismiss a petition filed under this section—
(1) on the motion of a petitioner;
(2) on consent of all petitioners and the debtor; or
(3) for want of prosecution.
[Rev. 4-29-05]