Trying to choose between waiting out a tough financial period and filing for bankruptcy protection is difficult. Some people might weight their options for many months before they reach a final decision. Those who are facing significant debts which they are unable to pay might be compelled into an involuntary bankruptcy by one or more creditors.
Reasons for Forced Bankruptcy
Forced bankruptcy is initiated by an individual’s creditors, but then it is handled in the same manner as if the debtor had sought bankruptcy him or herself. Typically, a petition to compel an individual into bankruptcy might be pursued if a debtor is effectively bankrupt in the sense that debt payments are not being made. Reasons that an individual’s creditors might choose this course of action include:
- A debtor has the capacity to pay multiple creditors at one time
- Preventing a person from selling belongings to evade before filing for bankruptcy
Chapter 7, Chapter 11, and Chapter 13 bankruptcy are all available for creditors who wish to press a debtor into involuntary bankruptcy. This process can be very complicated and it is important that you are properly advised and represented.
If you have been subjected to an involuntary bankruptcy, we can help. Contact the Milwaukee bankruptcy lawyers at the DeLadurantey Law Office, LLC, by calling 414-377-0518 to learn more in a free consultation.