Burke has been a rancher all her life, raising cattle and crops. Her ranch is valued at $ 500,000, almost all of which is exempt under state law. Burke has eight creditors and a total indebtedness of $ 70,000. Two of her largest creditors are Oman ($ 30,000 owed) and Sneed ($ 25,000 owed). The other six creditors have claims of less than $ 5,000 each. A drought has ruined all of Burke’s crops and forced her to sell many of her cattle at a loss. She cannot pay off her creditors. (See page 600.)
(a) Under the Bankruptcy Code, can Burke, with a $ 500,000 ranch, voluntarily petition herself into bankruptcy? Explain.
(b) Could either Oman or Sneed force Burke into involuntary bankruptcy? Explain.