Secured creditors are compensated first, followed by rectifying debt owed to unsecured creditors. If an involuntary petition is to be filed, the creditors must first present it to the court. The next step in the process is to determine the number of creditors. If the number of owed creditors totals 12 or over then three with unsecured debt totaling $10,000 must file the petition, however if there are less than twelve then only one with a $10,000 is required to file. Once the petition has been filed then all creditors must allow an automatic stay, claims against the debtor are suspended. Under Chapter 7, not all property is liquidated. State law sets many of the allowances, but "Federal law allows a $15,000 exemption for ownership of a home, $4,000 exemption for household items and clothing, and a $400 exemption for other property." (Daft 779) Transfer of property to other individuals to avoid seizure is not allowed by the courts. The type of bankruptcy most filed is Chapter 11, providing for reorganization. Small businesses are extremely susceptible to weakening under economic downturns or due mistakes made by management. Often with a relief from debt they are able to regain their feet and prosper; this is the instance in which Chapter 11 bankruptcy is utilized. The result of filing under Chapter 11 is a plan formulated by both creditors and debtor to repay portions of the balances and discharging the remainder. During this period of repayment the company continues to operate under the observation of the court. Many of the same principals used in Chapter 7 bankruptcy are also incorporated in Chapter 11; involuntary or voluntary filings are possible, the order for relief follows the same principals, and the debtor is granted an automatic-stay. Sometimes such arrangements are made with court action; "creditors may prefer private, negotiated adjustments of creditor-debtor relations, also known as workouts, to bankruptcy proceedings.