A single creditor with a $12,300 or more unsecured claim can file a petition for bankruptcy if there are fewer than 12 unsecured creditors. This is in accordance with the U.S. Bankruptcy Code, which allows a single creditor to initiate an involuntary bankruptcy proceeding under these conditions.

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A Single Creditor

Question 8

Multiple Choice

A single creditor

A) can never file a petition for bankruptcy.
B) with a $12,300 or more secured claim may file a petition for bankruptcy.
C) with a $12,300 or more unsecured claim may file a petition for bankruptcy,if there are fewer than 12 unsecured creditors.
D) with a $12,300 or more unsecured claim may file a petition for bankruptcy if there are more than 12 unsecured creditors.

Correct Answer: