Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Timothy Duggan, Chair of the Firm's Bankruptcy and Creditor's Rights Group, was quoted in The Trentonian on March 14, 2005 regarding the U.S. Senate's passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. You can read the article here.
If the amount being sought in a preference action is less than $10,000 from a particular creditor (but more from other creditors/defendants), does a separate action have to be filed in the venue where that small creditor's corporate headquarters are located? What if the small creditor does business in the state where the Complaint was filed?
Thank you!
Ms. Berkeley,
Thank you for your question. We are prohibited from giving legal advice over the internet, but I can direct you to basic law.
28 U.S.C. sec. 1409(b) is the source of the $10,000 limit. The statute uses the word "resides", but does not appear to define "resides". I have not read the legislative history to see if it provides some insight. However, 28 USC sec. 1369(c)(2) provides that a corporation is deemed a resident of "any State in which it is incorporated or licensed to do business or is doing business." This section may provide guidance.
I hope this helps. Please give me a call if you have further questions.
Tim Duggan
(609)895-7353