What is Involuntary Bankruptcy?
A Sacramento bankruptcy attorney comments on involuntary bankruptcies.
Involuntary bankruptcy occurs when a person is determined to be bankrupt at the request of a creditor. In general, the process of this form of bankruptcy initiates when a creditor files a petition with the appropriate financial court. The debtor will be provided with a grace period expiring in 20 days. Within the 20 day allotted time period, the debtor is provided with the opportunity to file any objections. If any objections are in fact filed by the debtor, the bankruptcy case will proceed to a court hearing. If no objections are filed in the 20 day grace duration, the bankruptcy will continue to proceed.
Most people are interested in learning what outcome to expect if objections are filed by the debtor and the involuntary bankruptcy case does proceed to an actual court hearing. The court will take each bankruptcy case into consideration on an individual basis. The bankruptcy court will review all details and information pertinent to each separate case. In the end, the court will make a final decision about whether or not the involuntary bankruptcy process would be the most effective approach to use for resolving the problematic debt situation. Statistically, 50% of the time, the court sides with the creditor in such cases.
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