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An involuntary case may be commenced only under chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation that is not a moneyed, business, or commercial corporation, that may be a debtor under the chapter under which such case is commenced.
A creditor with a secured debt usually will not need to file an involuntary bankruptcy petition because they can simply take the asset.) Creditors must meet certain criteria before they may commence an involuntary bankruptcy action.
A secured creditor may, as part of the loan agreement, also reserve the right to appoint a receiver where its debt is not repaid. A receiver's task is to sell, or otherwise dispose of the secured asset(s) with a view to repaying the debt.
Explanation: The primary requirement for a petition of involuntary bankruptcy is that creditors must demonstrate that a debtor has defaulted on repayments of debts. Involuntary petitions must be filed only by creditors who are owed, individually or in the aggregate, at least $16,750 in unsecured, undisputed debt.