Asked by Lindsey Murray on May 27, 2024

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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.
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Verified Answer

BA
Brianna AcevedoJun 03, 2024
Final Answer :
C
Explanation :
Involuntary bankruptcy occurs when the debtor's creditors initiate the bankruptcy proceedings, forcing the debtor into bankruptcy against their will.