Involuntary Bankruptcy Litigation

When creditors determine that a bankruptcy filing is necessary but the debtor refuses to voluntarily file for bankruptcy, one or more eligible creditors may commence an involuntary bankruptcy case. To commence an involuntary bankruptcy, the requisite number of eligible, petitioning creditors must file a bankruptcy petition under Chapter 7 or Chapter 11 of the Bankruptcy Code. If the debtor contests the involuntary bankruptcy filing, the bankruptcy court will then hold a trial in which the court will determine if the debtor should be adjudicated bankrupt. In such a trial, the court will typically consider (i) whether the petitioning creditors hold claims that are not contingent as to liability or the subject of a bona fide dispute as to liability or amount; and (ii) if the debtor is generally not paying such debtor's debts as such debts become due, unless such debts are the subject of a bona fide dispute as to liability or amount. If the court enters an order for relief adjudicating the debtor to be bankrupt, the bankruptcy case then proceeds under Chapter 7 or Chapter 11 of the Bankruptcy Code.

Snow Spence Green LLP's lawyers have successfully represented numerous petitioning creditor groups in commencing and prosecuting involuntary bankruptcy proceedings under both Chapter 11 and Chapter 7 of the Bankruptcy Code.

Representative Experience

The following are examples of engagements by firm attorneys within this area:

  • In re R. L. Adkins Corp., Debtor; Case No. 11-10241-7; In the United States Bankruptcy Court for the Northern District of Texas, Abilene Division.  Debtor engaged in oil and gas production. Served as counsel for petitioning creditors.

  • In re BNP Petroleum Corporation, Debtor; Case No. 09-20206-7; In the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. Served as counsel for petitioning creditors.

  • In re James A Whitson, Jr., d/b/a James A. Whitson, Jr. Oil Operators, Debtor; Case No. 09-34979-7; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  Debtor was engaged as an oil and gas operator.  Served as counsel for petitioning creditors.  Also successfully defended against debtor’s motion to dismiss or abate.

  • In re Jeffrey Scott Rand, Debtor; Case No. 09-34578; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  Debtor was an individual behind various fraudulent oil and gas companies.  Served as counsel for petitioning creditors.

  • In re Wave Energy, Inc., Debtor; Case No. 09-34577-H2-11; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  Debtor was an oil and gas operator.  Served as counsel for petitioning creditors.

  • In re STO Operating Company, Debtor; Case No. 09-12573-cag; In the United States Bankruptcy Court for the Western District of Texas, Austin Division. Served as counsel for petitioning creditors.

  • In re Cox Petroleum Company, L.L.C., Debtor; Case No. 04-38002-H1-7; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division. Debtor was engaged in oil and gas production. Served as counsel for petitioning creditors. 

  • In re Dunhill Resources, Inc., Debtor; Case No. 03-41264-H1-11; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division. Debtor was engaged in oil and gas production. Served as counsel for petitioning creditors.

  • In re Core Exploration & Production Corporation, Debtor; Case No. 02-36809-V2-7; In the United States Bankruptcy Court for the Southern District of Texas, Victoria Division. Debtor was engaged in oil and gas exploration and production. Served as counsel for petitioning creditors.

  • In re Contract Energy, L.L.C., Debtor; Case No. 01-42317-H4-11; In the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  Debtor was engaged in oil and gas production. Served as counsel for petitioning creditors.

  • In re Crawford Oil & Gas, Inc., Debtor; Case No. 01-15099; In the United States Bankruptcy Court for the District of Kansas, Wichita Division. Debtor was engaged in oil and gas production. Served as counsel for petitioning creditors.. 

  • In re Mustang Oil & Gas Corporation, Debtors; Case No. 97-56619-C (Jointly Administered); In the United States Bankruptcy Court for the Western District of Texas, San Antonio Division. Debtor was engaged in oil and gas production and exploration. Served as counsel for petitioning creditors.