A creditor whose collateral is worth less than the amount of its claim may be eligible to file an involuntary petition against a debtor.

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This is true. According to the United States Bankruptcy Code, a creditor who has an unsecured claim against a debtor and whose collateral is worth less than the amount of its claim may be eligible to file an involuntary petition for bankruptcy against the debtor. This can potentially result in the liquidation or reorganization of the debtor's assets.

A Creditor Whose Collateral Is Worth Less Than the Amount