An Involuntary petition for bankruptcy is filed by a creditor(s), when creditors take these measures; it can force a defaulter into bankruptcy. An involuntary petition may be filed in opposition to any defaulter which is competent of filing a voluntary petition under Chapter 7. Involuntary petitions contend that debtors are not current on their arrears. It is required that if the debtor attains twelve or more creditors, the petition needs to be signed by at least three creditors. Conversely, if the defaulters have less than twelve creditors, the petition may be signed by any number of creditors. The creditor(s) that engage in the signing of the petition are required to retain a legitimate unsecured claim of a minimum of ten-thousand dollars (Cheeseman, 2006).
The three gentlemen who formed the partnership and borrowed the finances are liable to repay the debts to the creditor(s). However, I do not think that one of the three partners can file an involuntary bankruptcy against the other two partners.
My understanding of an involuntary bankruptcy is that it is filed by a creditor, not a defaulter. Therefore, my thoughts are that no, the bankruptcy court probably should not allow the petition for an involuntary bankruptcy.
In the case of Mr. Friese, even though he submitted a plan of reorganization with his creditors separated into three classes, the bankruptcy court is not able to verify his plan for reorganization. This is due to the reason that not one of the creditors voted to agree to the plan. Under Section 1129 (a) or the acceptance method, the bankruptcy court is required to verify a plan of reorganization if the following examinations are met: (Cheeseman, 2006).
1. It is required that the plan is in the preeminent interest of the creditors either by undivided election of approval...