If Isabel convinces the judge that the creditors have filed the involuntary bankruptcy frivolously, which of the following is true regarding what amounts, if any, the court may force the creditors to pay?

A) The court may award attorney costs, fees of the debtor, and punitive damages.
B) The court may award attorney costs and fees of the debtor, but not punitive damages.
C) The court may award fees of the debtor, but not attorney costs or punitive damages.
D) The court may award punitive damages, but not attorney costs or fees of the debtor.
E) The judge may dismiss the involuntary bankruptcy petition, but no other relief is available.

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Peggy Andris · Accepted Answer

Final Answer : A, Explanation :  If a court finds that creditors filed an involuntary bankruptcy petition frivolously, it can award the debtor attorney costs, fees, and punitive damages. This serves as a deterrent against the misuse of the bankruptcy process by creditors.

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