Bankruptcy Case Dismissed Due to Unauthorized Filing

Bankruptcy
Written By Hans Riefkohl

Bankruptcy Case Dismissed Due to Unauthorized Filing

A creditor successfully argued for the dismissal of a Chapter 11 case due to the unauthorized filing of the bankruptcy petition. After finding that the creditor had standing to pursue the dismissal of the case on such grounds, the U.S. Bankruptcy Court for the Northern District of Illinois concluded that the debtor’s purported manager did not have the authority under the debtor’s LLC agreement to sign the petition on the debtor’s behalf.

The bankruptcy reached that conclusion because the debtor’s purported manager was not appointed in accordance with the debtor’s LLC agreement.

Hans Riefkohl
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