An involuntary bankruptcy can be a powerful tool in a creditor’s arsenal. Involuntary bankruptcies are rarely filed, however, because of the significant risk of liability for the petitioning creditor if the case is dismissed.

This article discusses the requirements to file an involuntary petition, the grounds on which the involuntary petition may be dismissed, and the types of liability that can be imposed on a petitioning creditor. To access this article and read other insights from our Creditor’s Rights Toolkit, please click here.