A bankruptcy instigated by creditors rather than the debtor.
Bankruptcy proceedings begun by the petition of a creditor who seeks to settle the affairs of a debtor.
A petition filed by certain credit grantors (instead of by the individual or business) to have a debtor judged bankrupt. If the bankruptcy is granted, it is known as an involuntary bankruptcy.
This is when creditor take legal action against a debtor and files petition in court.
a bankruptcy initiated by at least three creditors holding unsecured claims aggregating at least $5000 against the debtor. Data from the U.S. Administrative Office of the Courts subdivides bankruptcies into voluntary and involuntary.
Where a person is made bankrupt at the request of their creditors instead of at their own request. Related links: Bankruptcy