involuntary bankruptcy


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Involuntary bankruptcy

The process where creditors petition the court to begin bankruptcy proceedings on a debtor. Also see Voluntary bankruptcy.

Involuntary Bankruptcy

A situation in which a creditor may force a debtor into bankruptcy. A creditor may file for involuntary bankruptcy if the debtor has become severely and consistently delinquent or if a custodian has been appointed for the debtor in the previous six months. After the petition is filed, the debtor usually has 20 days in which to contest it. If the debtor objects to involuntary bankruptcy, he/she must show either that payments are not as delinquent as claimed or that he/she is taking steps to restore solvency. If the debtor does not show this, the bankruptcy court can force liquidation to repay the creditor(s).

involuntary bankruptcy

Bankruptcy that is forced by creditors instead of being initiated by the firm or individual. Compare voluntary bankruptcy. See also Chapter 7, Chapter 11.
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Trade and other unsecured creditors may consider joining an involuntary bankruptcy petition as a means to obtain payment of their claims.
If it is unable to come to an agreement acceptable to all its creditors, Armstrong concluded "it may be necessary for us to file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to implement a restructuring, or our creditors could force us into an involuntary bankruptcy or liquidation.
decided to go into voluntary bankruptcy versus waiting for its creditors to place Pimenton into involuntary bankruptcy.
As a result of these events, Trapeza filed a petition for involuntary bankruptcy for the bank under Chapter 7.
This comes less than two weeks after unsecured creditors sought to force the airline into involuntary bankruptcy.
Comcast SportsNet Houston, the regional sports network created in partnership with the Houston Astros, Houston Rockets, and NBC Universal/Comcast, filed involuntary bankruptcy on Friday.
no one is proposing involuntary bankruptcy for states.
One involuntary bankruptcy was dismissed (not listed below) and another dismissal is pending.
Seeking to put an individual into involuntary bankruptcy is relatively uncommon but can occur when creditors suspect a debtor may be hiding or dissipating assets, according to Richard A.
It's also not the only pending litigation for the developers, who are in the midst of involuntary bankruptcy proceedings with debt of more than $230 million.
Laska was one of several of Namvar's investors who forced the Iranian immigrant into involuntary bankruptcy, charging that he owed his clients upwards of $525 million and asking a Bankruptcy Court to manage his remaining assets.
Creditors Move Rangers Holding Companies Into Involuntary Bankruptcy (http://www.