22 BK 02485
An involuntary Chapter 7 bankruptcy case was filed against the Debtor by one secured creditor with an interest in the Debtor’s real estate, a condo in a retail setting. A receiver appointed in the Debtor’s divorce case moved for dismissal or abstention. The Court denied the receiver’s motion, finding abstention under 11 U.S.C. § 305(a)(1) was not appropriate because there were no unsettled issues on non-bankruptcy law; the state-court appointed receiver had been unable to dispose of the Debtor’s real estate at issue for two years; administration of the assets by a Chapter 7 trustee would be more efficient and would not prejudice any parties; and the case served a bankruptcy purpose. The receiver also alleged the case was not eligible for involuntary bankruptcy relief because there were too few petitioning creditors. However, the court found the issue of eligibility under 11 U.S.C. § 303 was nonjurisdictional and had been waived.