This form is a summons to the debtor in an involuntary bankruptcy case. A motion or answer must be filed within 20 days after the service of the summons.
North Carolina Summons to Debtor in Involuntary Case - B 250E
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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.
An order for relief will be entered if the debtor does not contest the involuntary petition or, if the debtor contests the involuntary petition, an order for relief will be entered if (1) the court determines that the debtor is not paying its undisputed debts as they come due, or (2) a custodian (other than a trustee, ...
A voluntary bankruptcy is the most common type of bankruptcy proceeding. It is initiated by a debtor who wishes to seek relief from their debt burden. Involuntary bankruptcies are very rare. They are initiated by creditors who want to receive payment for what they are owed from a debtor.
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. 11 U.S. Code § 303 - Involuntary cases | LII / Legal Information Institute cornell.edu ? uscode ? text cornell.edu ? uscode ? text