In re Miller, 489 B.R. 74

This core bankruptcy dispute concerns an involuntary Chapter 7 petition against Gerald L. Miller filed by Tennessee State Bank and two other petitioning creditors, the Housholder Family Trust and the McGinnises.
The involuntary petition proceeded alongside a separate voluntary Chapter 11 case filed by Miller in the Middle District of Florida, which led to a venue dispute resolved in favor of Eastern District of Tennessee.
Issues defined at pretrial contemplated whether Miller had twelve or more creditors on September 28, 2012, whether TS Bank’s claim was non-contingent and not subject to a bona fide dispute as to liability or amount and above the secured lien, whether the Housholder Trust’s claim was a qualifying non-contingent claim, whether three qualifying petitioning creditors’ claims exceeded the monetary threshold, and whether Miller generally did not pay debts as they became due.
Stipulations admitted that Miller had twelve or more creditors and that the McGinnises held an unsecured non-contingent claim of $85,000; venue was resolved in Miller’s favor, leaving the remaining issues to be decided at trial.
The court sustained the involuntary petition, granted TS Bank’s venue motion to proceed in the Eastern District of Tennessee, and denied Miller’s Rule 59(e) motion to alter or amend.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Miller had twelve or more creditors as of Sept. 28, 2012	Stipulations prove twelve+ creditors.	Miller contests the count.	Yes; Miller had twelve or more creditors.
Whether TS Bank’s claim is non-contingent and not subject to a bona fide dispute and exceeds the lien value	Bank’s claim is non-contingent and undisputed.	There is a bona fide dispute as to the amount.	Not subject to a bona fide dispute; qualifies.
Whether Housholder Family Trust’s claim is non-contingent and not in dispute	Lease creates a non-contingent debt owed by Miller.	Claim is contingent.	Not contingent; qualifies.
Whether three petitioning creditors’ claims aggregate to exceed the threshold over liens and Miller generally not paying	Aggregate claims exceed $14,425 over liens; Debtor not paying.	No such aggregation proves eligibility.	Yes; threshold satisfied; involuntary petition sustained.

In re Square at Falling Run, LLC, 472 B.R. 337 (Bankr.N.D.W.Va.2012) (prima facie not contingent and no bona fide dispute required for petitioning creditor status when claims meet threshold)
In re Rosenberg, 414 B.R. 826 (Bankr.S.D.Fla.2009) (post-BAPCPA interpretation of § 303; bona fide dispute as to liability or amount)
In re Waldo, 417 B.R. 854 (Bankr.E.D.Tenn.2009) (contract-based claim pre-petition and not contingent; lease-based debt enforceable)