Did you know that not all bankruptcy cases are voluntary? It’s true; there are laws that allow for a person to enter bankruptcy involuntarily. Although rare it is possible, but choosing bankruptcy can actually work for you rather than against you.
Petitioning The Court
An involuntary bankruptcy occurs when a person’s creditors ban together to petition the court in attempt to gain some repayment for your debt. This requires a lot of collaboration and agreement of creditors, which is rare. Further, creditors must be able to prove that certain conditions have been met. If only one creditor wishes to force a bankruptcy petition you must have less than 12 unsecured creditors and owe $5,000 or more. If you have more than 12 creditors, at least three of them must all petition the court together.
The good news is that you do have action in the matter. If you are forced into an involuntary bankruptcy, you can work with a qualified Dallas bankruptcy lawyer to help navigate your case. On the other hand, you can choose to file for bankruptcy on your own, which could be the difference in how your debts are managed. Choosing bankruptcy puts more of the positive light in your favor as you are voluntarily agreeing to submit your financial future to the court. Bankruptcy is designed to be a helpful resource for you, not a punishment. Choosing financial freedom is always a good decision for you and your family.