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Re: Eli's Gone post# 48042

Monday, 04/30/2018 12:34:07 PM

Monday, April 30, 2018 12:34:07 PM

Post# of 52074
Obviously, some additional research will be required, but Nevada is in the 9th Circuit:

Less often litigated is the issue here, namely, whether bad faith may serve as a basis for dismissal even where the criteria for commencing a suit are satisfied and where the debtor is admittedly not paying its debts as they become due. According to the Dawsons, we cannot engage in a bad-faith inquiry in these circumstances. They say a creditor’s subjective motivations are irrelevant because §303(b)(1) contains objective criteria for who may file an involuntary petition, and if they are satisfied, § 303(h)(1) provides that the court “shall order relief” against a debtor who is not paying its debts. Some courts have been receptive to this position.See, e.g., In re WLB-RSK Venture, No. BAP CC-03-1526- MOPMA, 2004 WL 3119789, at *6 n.13 (B.A.P. 9th Cir. Nov. 24, 2004) (“Section 303 sets forth the standards for granting or denying an order for relief on an involuntary petition. If the grounds for relief exist under section 303, the good or bad faith of the petitioning creditor appears irrelevant . . . .”)

In re Wavelength, Inc., 61 B.R. 614, 620 (B.A.P. 9th Cir. 1986)
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