Question

QUESTION 15 The creditors of Sara Delano have petitioned for involuntary bankruptcy proceedings against her. Delano has been consistently paying her obligations on time for the past year, her business was going badly. Two months before the petition was filed, Delano refused a demand by her creditors that a custodian be appointed to protect Delano's property. In her statement contesting the bankruptcy petition, Delano pointed out that she had dealt in good faith and could not be shown to be guilty of any act of misconduct. Can she prevail? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTTT Paragraph Arial 3 (12pt) %DO

Answer 1

answer-

Yes, she can prevail because Involuntary bankruptcy requires creditor to show that debtor has not been paying their debt or not able to pay their debt or have the ability to pay but choose not to pay.

In this case, The fact that Delono has been consistently paying her obligations on time for the past year. This shows that she has complete intention to pay debts of her creditors. On the other hand, if she failed to pay her debt or refuse to pay debt in future then creditor can file for this. till now she would prevail.