An involuntary bankruptcy occurs when a debtor's creditors are forced to accept a discharge of the debtor's debts.

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An involuntary bankruptcy occurs when one or more creditors file a petition with the court to force a debtor into bankruptcy. It does not necessarily result in a discharge of the debtor's debts but can lead to a reorganization or liquidation of the debtor's assets to pay off their creditors.

An Involuntary Bankruptcy Occurs When a Debtor's Creditors Are Forced