involuntary petition

An involuntary petition is a legal request filed by creditors or others to initiate a bankruptcy case against a company or individual who owes money. It is used when the debtor isn't voluntarily seeking bankruptcy protection, but the petitioning parties believe the debtor is unable to pay their debts. If the court approves, it formally begins the bankruptcy process, allowing for the orderly reorganization or sale of assets to satisfy creditors. This process helps ensure that debts are resolved fairly and efficiently, even when the debtor does not initiate the action themselves.