A bankruptcy petition filed by creditors, usually to force a debtor to enter a liquidation proceeding under Chapter 7. The debtor can contest the petition and can choose to convert it into a case under Chapter 11. When a debtor contests an involuntary petition, a court can enter an order for relief if the debtor does not pay its debts as they become due, or if a custodian is appointed to administer the debtor's assets, no more than 120 days before the filing. During the period between the filing of the petition and the granting of relief, the debtor may continue operating and is protected under the automatic stay.

For more information, see Practice Note, The Involuntary Bankruptcy Process.