Johnston Barton Files Motion to Dismiss Involuntary Bankruptcy

by San Antonio Attorney

Businesses are always concern about their finances, and the risk of bankruptcy when the economy is not good. While it is a distressing thought to file for bankruptcy, almost all businesses do not think of entering bankruptcy that is started by their creditors.

The lawyer for Johnston Barton Proctor & Rose LLP has requested the court to dismiss the involuntary Chapter 7 bankruptcy petition filed against the Birmingham law firm.

Earlier, CAPREF Brookwood Office LLC said Birmingham has a $2.5 million debt for rent and lease termination expenses for its previous office located in the Brookwood Center. The petition was filed last month and the firm had three weeks to answer the claims.

CAPREF’s attorney did not comment regarding the petition.

Based on court papers filed, Johnston Barton wants the court to terminate the case claiming that CAPREF does not have the ability to file the involuntary petition. The law firm also says it has been paying its debts to CAPREF.

Another hearing is set for Aug. 25.

Johnston Barton moved out of its offices in February while it was closing down its operations.

Creditors must prove that a debtor is not paying its obligations to back up an involuntary bankruptcy petition. However, there is no specific guideline for this matter, so it is up to the court to decide.

Even though involuntary petition is rare, it is helpful to be familiar about this kind of case. Whether you are a business owner or a creditor, consider when and how involuntary bankruptcy may affect your finances.

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