Sometimes, despite a person’s efforts, they find themselves in over their head in debts. Whether someone has lost their job or they have had to cover an unexpected expense, they may need to go through bankruptcy. If someone is struggling to cover their monthly bills and they are buried in debt, a bankruptcy lawyer can provide the legal assistance the client deserves. In the sections below, clients can find out the answers to some of the most common questions about involuntary bankruptcy.
What Is an Involuntary Bankruptcy?
An involuntary bankruptcy is a case that begins as the result of the creditor’s actions rather than the debtor’s. Both businesses and individuals can go into involuntary bankruptcy. Once a person’s creditors filed a petition with the local bankruptcy court, the debtor must file a challenge if they do not want to continue with the case.
How Many Creditors Have to File a Petition?
If someone owes more than 12 creditors, a minimum of three must work together to file a bankruptcy petition. The total claim from all of the creditors must equal more than $13,475. Consult a local attorney for more details on the state’s laws, or for bankruptcy assistance in Keller, TX.
When Can a Creditor File for an Involuntary Bankruptcy?
Creditors can file for an involuntary bankruptcy when the person has not paid back what they owe, or when they have more liabilities than assets. Most involuntary cases begin as liquidation or chapter 7 bankruptcies.
Who Pays the Legal Fees When a Petition Isn’t Granted?
If the court does not grant an involuntary bankruptcy petition, the creditors may be held responsible for paying the attorney’s fees, damages and other expenses associated with the filing. Therefore, creditors are only likely to file a petition if they believe that the court will grant it.
If a person or business believes that they may be in danger of an involuntary bankruptcy, they can turn to a local bankruptcy lawyer to find out about their legal options. Call the firm today or visit Davidskohmattorney.com to learn about the personalized bankruptcy assistance in Keller, TX these lawyers can provide.
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