Luxeyard, Inc. (fka LUXR)

[PinkPennies]

LUXR I'm really not understanding what you are trying to say here.

BK dismissal was for involuntary Chap 7 filing only.

The petition for bankruptcy was filed involuntarily by "alleged" creditors. In general, it's either a chapter 7, 11 or 13. There cannot be more than one filing [i.e it's either one of those but not a combination].

Anyone who understands what BK and Chap 11/7 relate to understands these are separate matters that don't involve the court.

A Chapter 7 filing is a complete, close your doors, halt of business operations; while a Chapter 11 is done for restructuring purposes. They most certainly do involve the Court. Where else would you file bankruptcy?

And only the Court can dismiss the action on a Petition filed, unless of course all parties involved "consent" to dismissing the action. However, even if the parties do "consent" to a dismissal of an action, I'm 99.9% positive that the consensual dismissal would still have to be approved by the Court in a bankruptcy action. That is not the case here. The news clearly indicates "the bankruptcy court dismissed the involuntary petition".

If you read and understand the news:

Responding to Bankruptcy Judge Barry Russell's inquiry, LuxeYard, Inc.'s attorney, Steven Fox, Esq., advised that LuxeYard, Inc. will be seeking actual, compensatory, and punitive damages against the parties that filed and joined in the involuntary petition, pursuant to Bankruptcy Code Section 303(i) and all other applicable law

...meaning that LUXR is free to seek damages due to the willful and mailicious action of the creditors in filing a frivilous petition which caused the company to suffer losses by maliciously bringing the action before the Court which was unwarranted.

The bankruptcy has most definitely been dismissed according to the news