Bankruptcy, or the threat of bankruptcy, is often invoked in an attempt to shift the balance of power in a dispute. When done in service of a bona fide bankruptcy goal, use of bankruptcy in this manner may be fully appropriate. When a bankruptcy petition is filed principally as a litigation tactic, however, the bankruptcy case is subject to a dismissal for bad faith.
Dismissal of 'Litigation Tactic' Bankruptcy Cases
The Legal Intelligencer
October 21, 2013