15. Can't creditors file an involuntary bankruptcy if an Assignment for the Benefit of Creditors is made?
Yes. Creditors may, pursuant to the Bankruptcy Code, petition the court to grant an involuntary bankruptcy for the Assignor.
If the Assignor has selected a reputable and professional assignee, such as Equitable Transitions, the Bankruptcy Court has routinely recognized the ABC as a viable alternative and has abstained from exercising jurisdiction over the Assignor's assets through a bankruptcy
The Bankruptcy Court has awarded attorney's fees in defending the involuntary bankruptcy which were required to be paid by the creditors who petitioned for the involuntary bankruptcy
