And There's More....
I looked up the definition for involuntary bankruptcy. Creditors most commonly use the involuntary bankruptcy procedure when the debtor has transferred, or is likely to transfer, assets that will diminish the creditors’ likelihood of being paid. For example, if the Debtor has made substantial transfers to insiders without adequate consideration, a bankruptcy trustee may recover those transfers for up to four years, depending upon the law of the applicable state. Similarly, if a debtor has repaid creditors substantial sums within the prior 90 days, a trustee can recover those payments as preferences.
On the other hand, sometimes creditors have concerns that a debtor will transfer significant assets, or even the debtor’s entire business operation. If a creditor obtains this kind of information the creditor may seek similarly situated creditors and commence an involuntary bankruptcy case by filing a petition with the bankruptcy court.
Filing an involuntary petition is similar to filing a federal court complaint. The debtor has thirty days after service to contest the validity of the filing. As shown from the list above, debtors may have many grounds to resist the bankruptcy filing. However, if the creditors prevail at a trial on their petition, the court will enter an order for relief and appoint a Chapter 7 trustee to begin the process of administering the debtor’s assets. At that point, the debtor has the right to convert its case to Chapter 11 (or 13, if the debtor is an individual) in order to reorganize its affairs.
It appears that Shavers has a problem paying subcontractors. Based on his track record, if he's allowed access to an open account in Lumberton, it's probably going to happen again. With our lackluster legal representation, I doubt our city will be able to recoup lost expenses like the debtors listed on page 14 of tne JESCO Construction bankruptcy case. I have more research to complete but the copy of the case is listed below. I don't know what happened to page 10 but the other pages are provided. According to the paperwork, JESCO Construction owes its creditors $14,662,901.65. I guess Ben Winston wants to add Lumberton to the list of unpaid creditors.