Screen whether the claims can support an involuntary bankruptcy petition

Key facts

Human involvement

Yellow · Close supervision

How AI is used

List each claim the file shows, whether the paper says it is contingent or disputed, the amount printed above any lien, and the number of petitioning creditors named. Do not decide that a petition may be filed.

What the lawyer must review

There is no United States statutory demand. An involuntary case under 11 U.S.C. § 303(a) may be commenced only under chapter 7 or chapter 11, and not against a farmer, a family farmer, or a corporation that is not a moneyed, business, or commercial corporation. Section 303(b)(1) requires three or more entities whose claims are not contingent as to liability and are not the subject of a bona fide dispute as to liability or amount, aggregating at least the statutory amount more than the value of any lien securing those claims. If there are fewer than 12 such holders, excluding an employee, an insider, and a transferee of a transfer voidable under the sections named in § 303(b)(2), one or more of those holders may file if their claims aggregate at least the same amount. The Cornell text prints $10,000. The adjustment note on that page states that, effective 1 April 2025, the amount in (b)(1) and (b)(2) is $21,050. You apply the adjusted amount and you decide whether the claims qualify. Bankruptcy Rule 9011 is your certificate if a petition is presented.

Written for / version

United States versionUSNZ