Financial stress happens to many people in debt to the point where the idea of bankruptcy pops in their mind. Instead of giving in you avoid bankruptcy and try to catch up on debt payments. When someone connected to your financial situation informs and encourages you to take the bankruptcy route, you have no choice but to file. Is that possible?
Involuntary bankruptcy is your creditors advising a person to file bankruptcy, and yes, it’s possible. Creditors are pushing the court to hear the case in order to get their payment as quickly as possible. Creditors can also file for bankruptcy without your permission. Once filed it goes to a court where creditors and debtor will have their case heard before a judge. If you are forced to file you must file chapter 7. If the judge rules against the creditors must pay for the other party’s court and attorney’s costs along with other fees. A Dayton, Ohio Bankruptcy Attorney knows this all too well and will assist you in any way they can.
The “advised” involuntary bankruptcy is called “forced but voluntary bankruptcy.” You are the one filing bankruptcy but creditors are the ones pressing the issue. You file bankruptcy in response to what the lender has done (i.e., default loan, foreclosure, court judgments). You are in bankruptcy mode as soon as you file. Chapter 7 is the only chapter individuals can use; it’s no good in chapter 13.
“Forced” bankruptcy is called “Truly Involuntary bankruptcy.” It’s startling to know that creditors can file bankruptcy on your behalf without your consent but it’s true. However, they need to follow guidelines. The debtor needs to fall under their conditions.
- Minimum number of creditors – For people with 11 or less different lenders or creditors all it takes is one creditor to file. Others can join later. If a person has 12 or more creditors three creditors must ban together to file. They choose the kind of bankruptcy to file.
- Minimum amount of money owed – $14,425 unsecured debt or $14,425 more than secured debt or liens. This amount changes every three years.
- Debtor currently not paying debt – the debtor cannot pay any portion of the bill.
- Chapter 7 – This chapter is the only chapter creditors to force individuals to file.
- Court approval – the court has to approve a filed involuntary bankruptcy petition.
During this time, people can continue to live their lives as if bankruptcy was never filed.
If a creditor or creditors are planning to file involuntary bankruptcy, we can help. You will be informed by mail if this happens to you. Take it to us and we’ll do the rest. Contact us for more information and for a free consultation.