Involuntary Bankruptcy

Involuntary Bankruptcy

A legal proceeding in which a person or business is requested to go into bankruptcy by creditors, rather than on the person or business' own accord. Creditors seeking involuntary bankruptcy must petition the court to initiate the proceedings, and the indebted party can file an objection to force a case.

Involuntary bankruptcy is requested by creditors who feel that they will not be paid if bankruptcy proceedings are not entered into, and seek a legal requirement to force the debtor to pay. In order for involuntary bankruptcy to be brought forward, the debtor must have a certain amount of debt that must be met. This amount depends on whether the debtor is an individual or a business.

Investment dictionary. . 2012.

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  • involuntary bankruptcy — n: bankruptcy declared upon petition of creditors see also bankruptcy Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. involuntary bankruptcy …   Law dictionary

  • involuntary bankruptcy proceeding — A proceeding in a court of bankruptcy instituted by the creditors of a person, firm, or corporation, without his or its consent, to have him or it adjudicated and declared to be a bankrupt. Re Murray (DC Iowa) 96 F 600, 602. See involuntary… …   Ballentine's law dictionary

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  • bankruptcy — bank·rupt·cy / baŋ ˌkrəp sē/ n pl cies 1: the quality or state of a bankrupt filed for bankruptcy 2: the administration of an insolvent debtor s property by the court for the benefit of the debtor s creditors the debt was discharged in bankruptcy …   Law dictionary

  • involuntary — in·vol·un·tary /in vä lən ˌter ē/ adj: done, made, or initiated contrary to or without one s choice an involuntary confession an involuntary lien an involuntary plaintiff joined in the action in·vol·un·tar·i·ly adv Merriam Webster’s Dictionary of …   Law dictionary

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  • Bankruptcy in the United States — The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact uniform Laws on the subject of Bankruptcies throughout the United States. Congress has exercised this authority several times since 1801, most recently… …   Wikipedia

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