Be Careful What You Ask for: Risks and Benefits of Involuntary Bankruptcy Filings

Level: Advanced
Runtime: 61 minutes
Recorded Date: April 21, 2021
Click here to share this program
Download PDF


• The Basics
        - Statutory Requirements for an Involuntary Case
        - Statutory Requirements Related to Petitioning Creditors
        - Statutory Requirements Related to Alleged Debtors
        - The Benefits of Petitioning Creditors
• The Risks
        - Claims under Section 303(i)
        - Section 303(e) Bonds
        - Bad Faith Standards
        - Abstention
        - Miscellaneous Considerations
• Pre-Planning Practice Pointers
        - Draft Objection to Motion to Dismiss Before Filing
        - Conduct Due Diligence
        - Gap Period Issues/Considerations

Runtime: 1 hour
Recorded: April 21, 2021


This panel will provide an overview of the requirements to file an involuntary bankruptcy case, along with the advantages and pitfalls that arise from these filings, including petitioner liabilities.

This program was recorded as part of the American Bankruptcy Institute's 2021 Virtual American Spring Meeting held on April 21st, 2021.

Provided By

American Bankruptcy Institute


Michael A. Sabella


Michael A. Sabella is an associate with BakerHostetler in New York, where he focuses his practice on the areas of bankruptcy, restructuring, creditors’ rights and complex commercial litigation. He assists debtors, creditors and interested parties in a variety of industries on all aspects of representation on bankruptcy issues, including corporate insolvencies, claims recovery, secured transactions, real estate and international insolvency.

Mr. Sabella has presented on, and written about, a wide range of bankruptcy issues, including case-specific appellate decisions, preference issues, and interpretations of sections of the Bankruptcy Code. He also defends corporate officers and directors against litigation challenging their actions and roles in connection with the management and operations of their companies, handling all stages of discovery, motion practice, litigation, mediation and settlement negotiations in these cases.

Mr. Sabella assists pro bono clients with LGBTQ impact litigation and representation, asylum applications, post-conviction relief, and amicus briefs for different human rights and interest groups. He received Chambers USA’s Diversity and Inclusion Award: Future Leader - LGBT Equality in 2019, has been listed as one of the “Best LGBTQ Lawyers Under 40” for 2019 by the National LGBT Bar Association, and has been listed as a New York Super Lawyers “Rising Star” since 2015.

Mr. Sabella is admitted to practice before the U.S. Supreme Court, the U.S. Court of Appeals for the Fourth Circuit, and the U.S. District Courts for the Eastern and Southern Districts of New York and the District of New Jersey.

Mr. Sabella received his B.A. magna cum laude in 2004 from Muhlenberg College, his J.D. in 2007 from St. John’s University School of Law, where he served as associate managing editor of the ABI Law Review, and his LL.M. in bankruptcy from St. John’s University School of Law in 2009.

Ericka F. Johnson

Womble Bond Dickinson, LLP

Ericka F. Johnson is a partner with Womble Bond Dickinson in Wilmington, Del., where she works with plan fiduciaries, chapter 11 debtors, unsecured creditors’ committees and retirees, landlords, purchasers, and creditors and parties in interest. She formerly worked for a leading bank holding company, where she managed consumer finance operations and internal risk assessments and audits from the U.S. Office of the Comptroller of the Currency. She calls on that experience for her clients, which include middle-market chapter 11 debtors, official committees of unsecured creditors and plan fiduciaries. She has advised debtor-in-possession lenders, landlords, secured and unsecured creditors, and asset-purchasers on bankruptcy and corporate restructuring matters across manufacturing, retail, real estate, and media/technology sectors.

Ms. Johnson has co-chaired ABI’s Technology and Intellectual Property Committee and served on the board of directors of the International Women’s Insolvency and Restructuring Confederation (IWIRC). In addition, she was listed as a Super Lawyers “Rising Star” from 2013-17.

Ms. Johnson is well-versed in litigation matters, including preference, fraudulent transfer, turnover and breach-of-contract actions. She regularly litigates contested matters including involuntary bankruptcies, motions for the appointment of chapter 11 trustees, claim objections, plan confirmation objections, and dismissal/conversion motions.

Ms. Johnson received her B.A. from the University of Delaware and her J.D. from Delaware Law School, where she was a member of the Phi Kappa Phi Honor Society, president of the Moot Court Honor Society and a member of the Delaware Journal of Corporate Law, and received the Outstanding Service Award.

Amber M. Carson

Gray Reed & McGraw, LLP

Amber M. Carson is an associate in Gray Reed & McGraw LLP’s Dallas office, where her practice focuses on complex restructurings, involuntary bankruptcy proceedings, asset acquisitions, liquidations, and litigation in the bankruptcy and insolvency arena. She represents a broad range of parties, including corporate debtors, creditors, official committees, trustees, equity-holders, receivers and lenders in a number of different industries and venues throughout the U.S.

Ms. Carson currently serves on ABI’s Diversity and Inclusion Working Group and is a member of ABI’s Business Reorganization and Young and New Members Committees. In addition, she serves as president of the DFW Association of Young Bankruptcy Lawyers, vice president of Law School Relations for the Bankruptcy Law Section of the State Bar of Texas and membership co-chair for the DFW Network of the International Women’s Insolvency and Restructuring Confederation.

Following law school, Ms. Carson clerked for Hon. Harlin D. Hale, Chief U.S. Bankruptcy Judge for the Northern District of Texas. She has been recognized as a Best Lawyer in Dallas Under 40 by D Magazine, a Rising Star by Texas Super Lawyers and a “One to Watch” in The Best Lawyers in America, and she was selected to participate in the National Conference of Bankruptcy Judges’ Next Generation Program.

Ms. Carson received her undergraduate degree from the University of Massachusetts at Amherst and her J.D. from Southern Methodist University’s Dedman School of Law, where she often serves as a guest lecturer on creditor’s rights.

Hon. Martin R. Barash

U.S. Bankruptcy Court, Central District of California

Hon. Martin R. Barash is a U.S. Bankruptcy Judge for the Central District of California in Woodland Hills, sworn in on March 26, 2015. He brings more than 20 years of legal experience to the bench.

Prior to his appointment, Judge Barash had served as a partner at Klee, Tuchin, Bogdanoff & Stern LLP in Los Angeles since 2001, where he counseled parties in chapter 11 cases and litigated chapter 7 and chapter 11 bankruptcy cases. Following law school, he clerked for Judge Procter R. Hug, Jr. of the U.S. Court of Appeals for the Ninth Circuit from 1992-93. Judge Barash is a member of ABI’s Board of Directors. He also serves as a director of the Judicial Leadership Development Council and is a member of the NCBJ Committee on Judicial Security. He previously was a member of the board of directors for the Los Angeles Bankruptcy Forum.

Judge Barash is a frequent panelist on bankruptcy law issues and has been a guest lecturer at the UCLA School of Law. He has also been involved in the local legal community as a pro bono attorney with the Public Counsel Chapter 7 Reaffirmation Hearing Clinic, and has been a volunteer judge for a course on negotiating and confirming chapter 11 plans at the UCLA School of Law and with UCLA’s Mock Trial Competition. He currently serves as a director and immediate past president of the Junior Statesmen Foundation, a national, nonpartisan organization sponsoring civics education programs for high school students.

Judge Barash received his A.B. magna cum laude in 1989 from Princeton University and his J.D. in 1992 from the UCLA School of Law, where he served as member, editor, business manager and symposium editor of the UCLA Law Review.

Similar Courses

Card image cap
77 minutes
§ 363 Sale Issues
Dive into Section 363 sales issues, including whether there are limits to “free and clear”; the GM conflict between Sections 365(h) and 363(f) (“lease-stripping”); sales free and clear of leasehold interests, restrictive covenants and override royalties; being free and clear of successorships in CBAs; selling free and clear of environmental liabilities (La Paloma, Exide); and loan-to-own strategies.

American Bankruptcy Institute


Add to Cart
Card image cap
63 minutes
A Collision of Complex Laws: The Interplay Between and Among State and Federal Regulatory Laws in Health Care Cases
This program will probe how state, federal and local laws affect health care bankruptcy cases. The program will address such regulatory schemes as ERISA, state and federal labor laws (with a focus on union issues), state local health care laws, and requisite approval processes for the sale of health care assets and state and local laws concerning reimbursement programs and other aid for the benefit of health care institutions. The program will feature speakers with experience in state, federal and local regulatory laws along with health care insolvency professionals.

American Bankruptcy Institute


Add to Cart
Card image cap
66 minutes
ABI's Hot Consumer Topics 2020
The panelists will discuss the best practices for tricky Chapter 7s, Chapter 13 plan modifications filed pursuant to The CARES Act, tips for ensuring proper service, and a discussion of the current case law on 401(k) contributions and nunc pro tunc orders

American Bankruptcy Institute


Add to Cart
Card image cap
60 minutes
ABI’s Commission on Consumer Bankruptcy vs. the Consumer Bankruptcy Reform Act
This panel will compare Sen. Elizabeth Warren’s bill with the ABI Consumer Commission’s Final Report, released in 2019, and will address consumer bankruptcy legislation that could be introduced this spring.

American Bankruptcy Institute


Add to Cart
Previous Next