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What is an order for relief in an involuntary case?
In bankruptcy proceedings, the order relieves the debtor of the immediate obligation to pay debts listed in the bankruptcy petition. In a voluntary case, the petition is the order; in an involuntary case, the order will be issued after the court determines that the petition was properly filed.
What is an involuntary case?
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.
Who can file an involuntary petition?
Creditors can commence an involuntary bankruptcy case against any entity who would be eligible for a voluntary case under Chapter 7 or Chapter 11 of the Bankruptcy Code, except for farmers, family farmers, and nonprofit or charitable corporations.
What is an involuntary petition?
A bankruptcy petition filed by creditors, usually to force a debtor to enter a liquidation proceeding under Chapter 7. The debtor can contest the petition and can choose to convert it into a case under Chapter 11.
Related Searches
Involuntary petition against an individualInvoluntary Chapter 11What is an involuntary creditor11 U.S.C. 30311 u.s.c. § 349(b)an automatic stay:Discharged debtsVoluntary and involuntary insolvency
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