Is it unwise or dangerous to participate in placing a debtor into involuntary bankruptcy?

Answer: If your company is not being paid but other creditors are; or if management is incompetent or dishonest; or if you are aware that assets are being sold at less than their fair market value; or if officers and owners of the company are being highly compensated or given bonuses while your company is not being paid then participating in an involuntary filing may be the best way to collect some or all of the money owed to your employer.

A note of caution: If you did not have a bonafide basis for an involuntary filing, your company may face significant liability. Even if your decision to file was correct, the debtor might nevertheless find ways to retaliate against your company - and at the very least the debtor may elect never to purchase from your company again even if they emerge from bankruptcy.