Involuntary Bankruptcy
/in-vol-uhn-ter-ee ˈbaŋkˌrəpt-see/
Definitions
- (n.) A bankruptcy proceeding initiated by creditors against a debtor who has not filed for bankruptcy voluntarily.
The creditors filed an involuntary bankruptcy petition to recover their debts.
Forms
- involuntary bankruptcy
- involuntary bankruptcies
Related terms
See also
Commentary
Involuntary bankruptcy is a procedural tool mainly used by creditors to compel repayment, highlighting distinct legal protections compared to voluntary filings.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.