Involuntary Bankruptcy Plan

May 2nd, 2014 | By | Category: Debt

It seems as if many individuals are seeking bankruptcy advice now, and with the state of today’s economy, that shouldn’t be a surprising fact. But if your financial situation is in this state that you’re seeking bankruptcy information, have you also studied your alternatives? Part of the whole operation is recognizing exactly where you stand and making an intelligent determination as to whether or not going bankrupt is genuinely your best option.

Normally, bankruptcy should be treated as your choice of last resort, and should only be applied when you genuinely have no other options. Merely being tired of paying all your financial obligations and being behind on a lot of them isn’t enough reason to file for bankruptcy, and as a question of fact in a case such as that, the courts may not even approve you to file. Yes, with the changes in bankruptcy law, you must have federal court approval to file, it cannot be performed on impulse alone.

The lenders, who hold about $20 billion in secured bank debt, had hoped EFH would skip the $270 million interest payment to the bondholders and instead file for bankruptcy to restructure its $40 billion debt load. A bankruptcy would have given the senior lenders – which include Apollo Global Management, Oaktree Capital Management and Centerbridge Partners, among others – first claim on the money being paid to the bondholders. But aside from trying to flex their muscles in future negotiations, there …


Bankruptcy is a financial state that happens once a person or business can no longer repay its debts. In the legal sense, bankruptcy begins when a court is aware that the financial state of bankruptcy exists. Bankruptcy is a legally declared inability or impairment of ability of a person or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor (‘involuntary bankruptcy’) in an attempt to recoup a portion of what they’re owed or start a restructuring. Bankruptcy is a state of affairs that no one wishes to face.

I really didn’t know…

You are susceptible to being a portion of an involuntary bankruptcy if you’re not paying your debts period. If you’re missing significant payments or you’re regularly missing sizable payments you may be submitted to involuntary bankruptcy. The court enters an order of relief and the creditors expenses and attorney fees are dispensed immediately. Creditors who’re not hasty in being paid at least a part of their owed debt will choose to file involuntary bankruptcy. Some creditors will use this as only a measure of last resort as if the judge was to see the charges as unjust the creditors themselves could obtain fees and charges. For additional details on this area of bankruptcy or others you can simply search bankruptcy or bankruptcy petition online. You can also talk to a bankruptcy attorney for a free consultation for your bankruptcy questions.

Do you have to be a creditor to file an involuntary bankruptcy petition?
If you co-sign on a loan can you file an involuntary bankruptcy petition if the other person is not paying on the loan? Or for instance you are in a partnership and none of the bills are being paid can you file an involuntary bankruptcy petition against the other partners?

  • afaik, it takes a minimum of three creditors who are each owed at least some minimum amount [in the thousands of dollars] to file an involuntary petition in bankruptcy against a debtor. Finding the other two is your problem. *** This illustrates one of the issues with co-signing loans. The bank won't make the loan at all unless you agree to be a "co-maker" [equally liable]. Yet, that isn't the position most co-signers really want — what they want is to be liable only for missed payments and/or the balance remaining if the debtor stops paying. So what a co-signer really wants is the right and obligation to buy the remaining debt if and when the debtor stops paying. That would make the co-signer an undoubted creditor and transfer any security interest in the collateral [example: an auto loan] to the co-signer. My advice — NEVER co-sign a loan. If you have that sort of assets and are willing to take the risk, counter offer to the bank that you will deposit the full amount of the funds at the bank and thus guarantee the loan with your deposit — in exchange for which, you get to take over the bank's position [and seize the collateral] if the debtor stops paying.

  • That is a good question. If you co-signed and you they didn't pay, chances are they are going to come to you for it. Since you are a co-signer, I BELIEVE that you can get it taken care of however you wish. If it is a unsecured loan, I would see a credit counselor first. They can usually lower they payment, and interest and make it easier to pay. Depending on what state, and what bank it is, if it is insecure, I would call Plan First Financial Solutions or go to their website pffs.com They work in most of the USA,

  • Not in this country!


  • It is understood that, owing to job loss, terminal illness and the killing of a partner can throw people into severe debt. The most common cause for bankruptcy is still in fact mainly due to credit card debt. It is key to speak with a bankruptcy attorney for a free consultation. You can do this online or by calling a local attorney out of the telephone book. An experienced attorney can steer you on the right track when making the option to file bankruptcy. In general chapter 7 converts your non-exempt assets into cash to pay back outstanding bills. Chapter 13 is a kind of financial reorganization. With chapter 13 you’re given time to pay back your bills, stopping foreclosures and maintaining the bulk of your property. Bankruptcy can provide financial freedom but should serve as a last resort as opposed to paying bills off through debt consolidation practices.

    You can either file Chapter 7 or Chapter 13, for consumers and individuals. Let’s look a bit closer at what those are.

    Bankruptcies are filed in the following chapter headings. Chapter 7– Straight bankruptcy; debtor releases non-exempt property and debts are eliminated. Bankruptcy will always be the rope for individuals too deep in the quicksand. However, it is better to learn to read the warning signals and stay away completely.

    You can begin your bankruptcy process by filing a petition. This is a record that includes a debtor’s financial information. Depending on your situation you’ll either choose or have a special chapter of bankruptcy suggested for your debt relief benefit. A creditor can also file a bankruptcy petition on your behalf. This petition is filed with the U.S bankruptcy court clerk. A debtor has 20 days to file objections. If objections are filed, the case can go to trial. If there are no objections filed the bankruptcy will proceed. Involuntary bankruptcy can not be filed under two chapters. These are chapter 7 and chapter 13 of the bankruptcy code.

    You are susceptible to being a portion of an involuntary bankruptcy if you’re not paying your debts period. If you’re missing significant payments or you’re regularly missing sizable payments you may be submitted to involuntary bankruptcy. The court enters an order of relief and the creditors expenses and attorney fees are dispensed immediately. Creditors who’re not hasty in being paid at least a part of their owed debt will choose to file involuntary bankruptcy. Some creditors will use this as only a measure of last resort as if the judge was to see the charges as unjust the creditors themselves could obtain fees and charges. For additional details on this area of bankruptcy or others you can simply search bankruptcy or bankruptcy petition online. You can also talk to a bankruptcy attorney for a free consultation for your bankruptcy questions.

    It is understood that, owing to job loss, terminal illness and the killing of a mate can throw people into severe debt. The most common cause for bankruptcy is still in fact mainly due to credit card debt. It is key to speak with a bankruptcy attorney for a free consultation. You can do this online or by calling a local attorney out of the telephone book. An experienced attorney can steer you on the right track when making the option to file bankruptcy. In general chapter 7 converts your non-exempt assets into cash to pay back outstanding bills. Chapter 13 is a kind of financial reorganization. With chapter 13 you’re given time to pay back your bills, stopping foreclosures and maintaining the bulk of your property. Bankruptcy can provide financial freedom but should serve as a last resort as opposed to paying bills off through debt consolidation practices.

    Chapter 7 means all your debts (with the exception of back child support, taxes, and a small number of others) are discharged and you start over with a clean slate. Chapter 13 demands that you come up with a strict repayment plan according to your income and assets to pay back as much of your debts as possible inside a 5 year period.

    One of the arrow keys to remember here, however, is that the chapter you file isn’t your determination, it’s a decision of the court, and that decision is determined by how your current financial information is presented to them. This is key, and is one of the main reasons that money you drop on a bankruptcy lawyer is well worth the expense. They understand the law and are able to produce your funds in a light that can lead the court to the preferred decision.

    But not putting the cart before the horse, one of the things you got to do is obtain a bankruptcy evaluation with a qualified bankruptcy lawyer. They will review your finances and give recommendations as to your best options, which may not be bankruptcy, or even though it is, what you can expect if you go with it.

    Your greatest option is to get a bankruptcy evaluation. This may be the best piece of bankruptcy information and advice you’ll find anyplace. You cannot get to where you wish to go if you do not know where you’re right now.

    Tags:

    Comments are closed.