Involuntary Petition: Transferred Claims; Joining Other Creditors; Additional Time to Join

U.S Code last checked for updates: Jan 30, 2025

Rule 1003.

(a)

Transferred Claims.

An entity that has transferred or acquired a claim for the purpose of commencing an involuntary case under Chapter 7 or Chapter 11 is not a qualified petitioner. A petitioner that has transferred or acquired a claim must attach to the petition and to any copy:

(1)

all documents evidencing the transfer, whether it was unconditional, for security, or otherwise; and

(2)

a signed statement that:

(A)

affirms that the claim was not transferred for the purpose of commencing the case; and

(B)

sets forth the consideration for the transfer and its terms.

(b)

Joining Other Creditors After Filing.

If an involuntary petition is filed by fewer than 3 creditors and the debtor’s answer alleges the existence of 12 or more creditors as provided in § 303(b), the debtor must attach to the answer:

(1)

the names and addresses of all creditors; and

(2)

a brief statement of the nature and amount of each creditor’s claim.

(c)

Additional Time to Join.

If there appear to be 12 or more creditors, the court must allow a reasonable time for other creditors to join the petition before holding a hearing on it.

(As amended Mar. 30, 1987, eff. Aug. 1, 1987; Apr. 2, 2024, eff. Dec. 1, 2024.)