Which of the Following Is a Requirement for an Involuntary

question 45

Multiple Choice

Which of the following is a requirement for an involuntary Chapter 7 bankruptcy petition?

• A) The debtor must owe at least $150,000 in unsecured claims to the creditors who file.
• B) The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors. If the debtor has fewer than 12 creditors, any single creditor or group can file a petition.
• C) The creditors must have tried to help the debtor overcome the financial difficulties.
• D) The debtor must have a majority of the creditors file the petition.

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Definitions:

Pre-tax Cost

The expense or cost incurred by a corporation before the deduction of tax liabilities.

Pay Interest

The act of compensating lenders or depositors for the use of their money, typically expressed as an annual percentage of the principal.

Face Value

The original value or nominal value of a security as stated by the issuer, often used in the context of bonds or other fixed-income securities.

Weighted Average Flotation

An average calculation of flotation costs for new securities, weighted by the proportion each security contributes to the total amount issued.