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 West Virginia, 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 certain conditions. This action is typically taken when creditors believe a business debtor is not paying its debts despite having the means to do so. Involuntary bankruptcy can only be initiated under Chapter 7, which involves liquidation of the debtor's assets, or Chapter 11, which allows for reorganization of the debtor's business affairs. It is important to note that involuntary bankruptcy cannot be filed under Chapter 12, which is designed for family farmers and fishermen, or Chapter 13, which is for individuals with regular income to develop a plan to repay all or part of their debts. The debtor has the right to contest the petition, and the court will determine whether the petition meets the legal requirements. If the court approves the involuntary bankruptcy, the process will proceed similarly to a voluntary bankruptcy case. Creditors considering an involuntary bankruptcy in West Virginia should consult with an attorney to ensure compliance with the legal requirements and to assess the likelihood of a successful outcome.