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.
Virgin Islands Summons to Debtor in Involuntary Case - B 250E
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FAQ
A petitioning creditor, as defined by Title 11 of the U.S. Bankruptcy Code, can initiate an involuntary bankruptcy by filing an involuntary petition. The petition sets forth requirements for the creditor to satisfy and can be filed against an individual or business.
Motion for Relief from the Automatic Stay is a request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.
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.
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, ...
Section 303(a) of the Bankruptcy Code only permits involuntary cases under either chapter 7 or chapter 11 of the Code. No involuntary chapter 9, chapter 12 or chapter 13 cases are authorized. Further, an involuntary cannot be commenced against a farmer, family farmer or not for profit entity.
A debt relief order, or DRO can be a low-cost alternative to bankruptcy. It's a way to have your debts written off if you can't realistically afford to pay them back.
The determination that a person or entity is a debtor under the Bankruptcy Code. In a voluntary bankruptcy case, the filing of the bankruptcy petition constitutes an order for relief (§ 301(b), Bankruptcy Code).