West Palm Beach Bankruptcy Lawyer

Voluntary Bankruptcy

Most commonly, the debtor chooses to initiate the process of filing for bankruptcy. This type of case is called voluntary bankruptcy, not to be confused with involuntary bankruptcy, in which the creditors take action against the debtor and attempt to force him or her into immediately paying what is owed. In 2006, United States individuals and companies filed 597,965 bankruptcy cases.

If one chooses to file for voluntary bankruptcy, then the process will go through the Bankruptcy Court, a federal court that is available in each state. Typically, people choose the option of bankruptcy when their economic status is in a position that is seemingly impossible the remedy. The majority of people who file for bankruptcy either have just lost their jobs or have a severe health condition.

When one files for voluntary bankruptcy, he or she will see immediate, albeit temporary, liberation from all debts. An automatic stay is placed on all money owed, allowing the debtor relief from creditors asking for their money. However, any future debts are not protected by the automatic stay. It is up to the filer to rebuild his or her credit rating after filing for bankruptcy.

Contact Us

If you owe more money than is manageable to a creditor or a number of creditors, West Palm Beach bankruptcy attorneys Eric N. Klein & Associates, P.A. can help you start the voluntary bankruptcy process. Please contact their law offices today at 561-353-2800 to schedule an appointment.