A majority of creditors must refuse to accept an out-of-court settlement before formal bankruptcy proceedings will begin.

Question

Quizplus · Accepted Answer

A majority of creditors is not required to refuse an out-of-court settlement before formal bankruptcy proceedings can begin. Rather, the decision to file for bankruptcy is at the discretion of the debtor, who may choose to do so if they believe it is the best option for their financial situation.

A Majority of Creditors Must Refuse to Accept an Out-Of-Court