Detailed Answer
Answer (A) is correct. In a Chapter 7 liquidation or in a Chapter 11 reorganization, a voluntary or an involuntary petition is filed in the federal bankruptcy court. An involuntary petition must be joined by three or more creditors with unsecured claims of at least $14,425 if the debtor has 12 or more creditors. If there are fewer than 12, one creditor with a claim of at least $14,425 may file.
