The bankruptcy process is designed to help creditors (persons or entities who are owed money) as well as debtors (persons or entities who owe money). And one of the powers given to creditors under bankruptcy law is the power to force a debtor into bankruptcy against the debtor’s wishes—known as involuntary bankruptcy.

Involuntary bankruptcy usually involves a group of creditors filing a bankruptcy on behalf of a debtor—usually a business—where the creditors believe the business can pay its obligations to the creditors, but is refusing to do so. Involuntary bankruptcy petitions against individuals are less common, as only affluent individuals are likely to have assets that may be used to pay the creditors. And a creditor can only file an involuntary bankruptcy case under Chapter 7 or Chapter 11—not under Chapter 12 or Chapter 13.

In Illinois, as in all states, the bankruptcy process is governed by federal law, specifically the U.S. Bankruptcy Code. Creditors have the right to file an involuntary bankruptcy petition against a debtor under Chapter 7 or Chapter 11 of the Bankruptcy Code. This action is typically taken when creditors believe a business debtor is not paying its debts despite having the means to do so. For an involuntary bankruptcy to proceed under Chapter 7, there must be a minimum of three creditors with unsecured claims totaling at least $16,750 if the debtor has 12 or more creditors. If the debtor has fewer than 12 creditors, a single creditor may initiate the process if the claim meets the threshold amount. Under Chapter 11, which is used for business reorganizations, the same monetary threshold applies. Involuntary bankruptcies against individuals are rare and usually involve those with substantial assets. It's important to note that involuntary bankruptcies cannot be filed under Chapter 12, which is for family farmers and fishermen, or Chapter 13, which is for individuals with regular income to reorganize their debts.