Defenses to Preferences Are Considered in Counting an Involuntary Debtor’s Creditors

A former bankruptcy judge, now a district judge, makes important law on involuntary petitions.

Third Circuit Backtracks; Malice Not Required for Punies on a Dismissed Involuntary

Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.