Legal Contracts and Bankruptcy
Should the petition for involuntary bankruptcy be granted? Explain.
There's two ways that we can at this. If Beren felt that the $200000 was not going to be repaid to the bank then he had more than an adequate right to file an involuntary petition. If the partners felt that they had enough money to finish the job, recoup their losses, and pay back the bank, then Beren had no right to file the petition. In this case, an involuntary injunction is "a petition filed by creditors of the debtor; alleges that the debtor is not paying his or her debts as they come due" (Cheeseman 2004). …
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