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Home > Law Advice > Bankruptcy Law > Involuntary Bankruptcy
Bankruptcy Law
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What is involuntary bankruptcy?

Creditors, rather than the debtor, file the petition in bankruptcy. It is very unusual for the creditors of a consumer debtor to file an involuntary petition, by the way. Involuntary petitions are rare, however, occasionally used in business settings to force a company into bankruptcy so that creditors can enforce their rights.

(Reviewed 11.10.08)

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