Yes, you read that right – a creditor can force a business debtor (and sometimes, a wealthy individual) into bankruptcy under certain circumstances. If a business debtor owes your company money, consider filing an involuntary bankruptcy case on its behalf.
Read on to find out when filing an involuntary bankruptcy petition is advantageous for a creditor, and how to do so.
The Debtor Company Must Have Assets
So your company is owed money, and the debtor has assets. This is the perfect reason to file a Chapter 7 bankruptcy case on behalf of the debtor. What ideally happens next is that the Chapter 7 Trustee will seize and sell the assets of the debtor business for the benefit of that business’ creditors, including you.…Continue reading