What Is an Involuntary Bankruptcy and How Can Creditors Use This Powerful Tool? - Creditor’s Rights Toolkit
JD Supra: Mergers
JULY 26, 2024
In most bankruptcies, the company decides to file for relief. In involuntary bankruptcies, creditors force the company into bankruptcy. Involuntary petitions are an extreme remedy, and therefore the requirements and standards to meet for filing such petitions are strictly construed and applied. If creditors meet the requirements under the Bankruptcy Code for filing an involuntary petition, it can serve as a powerful tool to use against a debtor.
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