First National Bank v. Paul

Hammerschmidt Lumber Company appeals the district court’s affirmance of an order of the bankruptcy court which dismissed its petition for involuntary bankruptcy against Bonnie Paul.

*16In the bankruptcy court, Hammerschmidt Lumber contended that Mrs. Paul had committed an act of bankruptcy under 11 U.S.C. § 21(a)(3).

11 U.S.C. § 21(a)(3) provides:

a. Acts of bankruptcy by a person shall consist of his having * * * (3) suffered or permitted, while insolvent, any creditor to obtain a lien upon any of his property through legal proceedings or dis-traint and not having vacated or discharged such lien…