What is involuntary bankruptcy?
Sometimes, it is not your decision to file for bankruptcy. When you owe large sums of money to numerous creditors, they may try to force you into filing for bankruptcy. In some cases, they will get together and file a petition with the US Bankruptcy Court requesting that you file for either Chapter 7 or Chapter 11 bankruptcy.
If the petition is approved, then you will be forced to file for bankruptcy. If it was determined to have been filed in bad faith, however, then you will be awarded damages from these creditors instead.
If you would like to learn more about involuntary bankruptcy, contact Birmingham bankruptcy lawyer Paula Greenway today at (205) 324-4000.