Creditors giving credit, or lending money to a debtor, in the period between the filing of an involuntary bankruptcy petition and the entry of the order for relief are known as _____ creditors.

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Creditors who lend money in the period between the filing of an involuntary bankruptcy petition and the entry of the order for relief are known as gap creditors. This period is known as the gap period because there is a gap or interval between the time when the petition is filed and the order for relief is entered. During this time, creditors may be unsure about whether the debtor will ultimately be declared bankrupt, and they may be hesitant to extend credit. Gap creditors are taking a risk by lending money during this period, as their claims may not be fully enforceable once the bankruptcy process begins.

Creditors Giving Credit, or Lending Money to a Debtor, in the Period