Sunday, February 2, 2014
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INVOLUNTARY BANKRUPTCY
When a person wants to start bankruptcy, they often borrow money from the creditors for their initial expenses. When the business starts, the creditors tend to be supportive because they are in a hope that the business will be making profits and they will be getting their money back along with the interest. However if the project fails creditors forced the business to file bankruptcy. This is called involuntary bankruptcy.
INVOLUNTARY BANKRUPTCY
When a person wants to start bankruptcy, they often borrow money from the creditors for their initial expenses. When the business starts, the creditors tend to be supportive because they are in a hope that the business will be making profits and they will be getting their money back along with the interest. However if the project fails creditors forced the business to file bankruptcy. This is called involuntary bankruptcy.Involuntary bankruptcy is a type of bankruptcy, which is generally requested by the lenders to get back the money that they have invested on the business project. Involuntary bankruptcy generally arises when a business is drowned with debts and has no chance of paying back. Involuntary bankruptcy is normally taken as Chapter 7 bankruptcy and it starts by the creditors after a petition is filed.
After the petition is filled the debtors has only twenty days in his or her hand to file for objection and after the objection is filled the case goes to the court for trial. If the debtor did not oppose to the filing then the court proceeding will start without farther delay. If the case goes for trail the debtor have to prove that, the payments are not pending and the dues already clear or the debtor have to prepare a repayment plan to get relief from bankruptcy.
There are many businessperson who are facing involuntary bankruptcy because of there inability to pay back the dues to the creditors. They also have the right to oppose the objections filled. Theore, it is always advisable to consult a bankruptcy attorney about anything regarding bankruptcy.