involuntary petition

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. When a debtor contests an involuntary petition, a court can enter an order for relief if the debtor does not pay its debts as they become due or if a custodian is appointed to administer the debtor's assets no more than 120 days before the filing. During the period between the filing of the petition and the granting of relief, the debtor may continue operating and is protected under the automatic stay.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • involuntary petition — A petition filed in a court of bankruptcy which seeks an adjudication of bankruptcy against the defendant. 9 Am J2d Bankr § 207 …   Ballentine's law dictionary

  • involuntary adjudication — An adjudication in bankruptcy on an involuntary petition. Bankruptcy Act § 1(2); 11 USC § 1(2). A determination, whether by decree or by operation of law, that a person is a bankrupt. 29 Am J2d Bankr § 264. A determination, whether by decree not… …   Ballentine's law dictionary

  • involuntary case — Creditors of a debtor may petition the court to force the debtor into a bankruptcy proceeding. This may also be referred to as a creditors petition. If the debtor has 12 or more creditors, the petition must be filed by three or more creditors… …   Glossary of Bankruptcy

  • petition — pe·ti·tion 1 n 1: a formal written request made to an official person or body (as a court or board) a petition for equitable relief the creditor filed a petition for involuntary bankruptcy 2: a document embodying a formal written request petition …   Law dictionary

  • involuntary bankruptcy — n: bankruptcy declared upon petition of creditors see also bankruptcy Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. involuntary bankruptcy …   Law dictionary

  • Involuntary commitment — For involuntary treatment in non hospital settings, see involuntary treatment. Involuntary commitment or civil commitment is a legal process through which an individual with symptoms of severe mental illness is court ordered into treatment in a… …   Wikipedia

  • Involuntary Bankruptcy — A legal proceeding in which a person or business is requested to go into bankruptcy by creditors, rather than on the person or business own accord. Creditors seeking involuntary bankruptcy must petition the court to initiate the proceedings, and… …   Investment dictionary

  • petition in insolvency — A petition, voluntary or involuntary, for the adjudication of a person as an insolvent, to the purpose that insolvency proceedings may ensue, wherein such assets as the insolvent has may be distributed according to law. 29 Am J Rev ed Insolv § 14 …   Ballentine's law dictionary

  • creditor's petition — Petition filed against a debtor by one or more creditors. also see involuntary case (Bernstein s Dictionary of Bankruptcy Terminology) United Glossary of Bankruptcy Terms 2012. creditor s petition …   Glossary of Bankruptcy

  • bankruptcy petition — ➔ petition * * * bankruptcy petition UK US noun [C] ► LAW, FINANCE a formal letter to a court asking that a person or company be declared bankrupt: »The latest bankruptcy petition was filed April 14. »Lawyers are considering an involuntary… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”