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Nicholas J. LePore Comments on ABFS Forced Bankruptcy

On January 14, 2005 by Schnader in News

Schnader partner Nicholas J. LePore, chair of the Firm’s Bankruptcy, Workout and Business Reorganization Practice Group, was quoted in the Philadelphia Business Journal article, “Forcing ABFS Involuntary Bankruptcy Risky, Experts Say.”

The article states that American Business Financial Services, Inc., which makes home equity loans to people with bad credit, might seek U.S. bankruptcy protection or be forced into involuntary bankruptcy. To force a company into involuntary bankruptcy may be more difficult than it seems, the article noted.

“It’s expensive, it’s unusual and it’s risky,” said Nick. “If a judge finds an involuntary bankruptcy was filed without merit, the court can force the petitioners to pay damages and legal fees on top of their own,” he added.