West Palm Beach Bankruptcy Lawyer
Involuntary Bankruptcy
For most people, the idea of bankruptcy can be a very scary prospect. Individuals or companies typically want to take the time to assess all of their financial options first before taking any action toward filing bankruptcy. When creditors file a bankruptcy petition against you, an act called “involuntary bankruptcy,” it can be quite startling and unnerving. There are steps that you can take, however, to deal with this new and unwelcome situation.
Most people do not realize that creditors have the ability to force someone into bankruptcy against his or her will. While it is rare for creditors to actually petition for involuntary bankruptcy, some do feel that it is necessary in order for them to make it clear that they are serious about obtaining their money.
There are several requirements necessary for a creditor to be legally allowed to file for involuntary bankruptcy against a debtor. These include all of the following:
- The debtors must owe an unsecured amount of $10,000 or more to the creditors
- If there are twelve or more creditors that are owed, then at least three must participate in the bankruptcy claim process
- The debts cannot be contingent
If these conditions are met, then a creditor or multiple creditors may petition for involuntary bankruptcy.
Contact Us
If you have had involuntary bankruptcy filed for you, West Palm Beach bankruptcy lawyer Eric N. Klein & Associates, P.A. can help you defend your case. Please contact their law office at 561-353-2800 today to schedule an appointment.
