Asked by Lindsey Murray on May 27, 2024
Verified
Which of the following occurs when the debtor's creditors force the debtor into bankruptcy proceedings?
A) Voluntary bankruptcy
B) Creditor's bankruptcy
C) Involuntary bankruptcy
D) Forced bankruptcy
Involuntary Bankruptcy
This is a legal process initiated by creditors against a debtor, rather than the debtor filing for bankruptcy voluntarily, forcing them into bankruptcy to satisfy debts.
Creditors
Persons or organizations that are owed money by borrowers.
Bankruptcy Proceedings
The legal process through which individuals or businesses that are unable to repay their debts can seek relief from some or all of their financial obligations.
- Appreciate the legal implications of involuntary versus voluntary bankruptcy and the criteria for each.
Verified Answer
Learning Objectives
- Appreciate the legal implications of involuntary versus voluntary bankruptcy and the criteria for each.
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