Leif has fifteen creditors. To force Leif into bankruptcy proceedings,at least three creditors must join the petition and their unsecured claims must add up to at least

Question

Quizplus · Accepted Answer

According to the question, at least three creditors must join the petition to force Leif into bankruptcy proceedings. Therefore, the minimum number of creditors required is three. The total unsecured claims of these three creditors must be at least enough to push Leif into bankruptcy. Nowhere does it mention that Leif owes any secured debts, so we can assume that all of his debts are unsecured. Therefore, the sum of unsecured claims of the three creditors must be at least equal to or greater than the minimum amount required to file for bankruptcy, which is $15,325. Hence, option B is the correct answer.

Leif Has Fifteen Creditors