Generally speaking, we think of the declaration of bankruptcy as a last-ditch effort of an individual or company to get out from under insurmountable debts. What is less well-known is the fact that this process can be imposed upon a debtor by his creditors, an act called “involuntary bankruptcy,” which is accomplished through a legal petition.

Fortunately for most debtors, current laws often favor them. A petition for involuntary bankruptcy is only valid if filed jointly by at least three creditors (or just one, if money is owed to fewer than twelve) to whom at least $10,000 is owed, although this figure is larger under some circumstances. cialis for sale online The petition can only be brought to court if it can be proven that the individual or business has not been paying bills on time or is likely to thwart creditors by paying off insiders, leaving them unable to meet their other financial obligations. Creditors are not able to Cialis Professional file an involuntary bankruptcy until other methods of collecting delinquent debts, such as judgments, are exhausted.

The best way to forestall this process is to have a bankruptcy attorney file an objection. This action will force a trial which, in turn, may prove to be extremely costly to the creditor. If they lose, they not only pay all court costs, but any punitive damages assessed against them. This information might be enough to cause the creditor to withdraw the petition.

If the case does go to trial, several factors are cause for dismissal. The easiest is to prove that the amount owed is less than what is claimed by the creditor(s); failing that, showing a history of timely payments and a willingness to continue to pay will almost always result in dismissal.

Another way to stop an involuntary bankruptcy is for a debtor to beat the creditor to the punch by filing himself. A discussion with a No prescription cialis lawyer will decide whether Chapter 7, 11 or 13 is best suited to the particular circumstances. Whatever action is taken, it must be done within twenty days of the creditor’s submission of the petition.

Although involuntary bankruptcies are becoming rarer, they do still occur to vulnerable businesses and their owners. Anyone in debt in the amount of $10,000-15,000 is a candidate for a petition filed by creditors and should consult with a bankruptcy attorney for ways to either prevent or win a dismissal of such a petition. The laws governing this process are convoluted and confusing, and must be handled by a professional; bankruptcies of any kind are not for amateurs, and involuntary bankruptcies may be the most highly regulated of them all.

Author Bio: Stephen Daniels is an acclaimed SEO 2.0 researcher. If you need debt relief in Detroit, he recommends A Better Way Bankruptcy. With 3 decades of experience in bankruptcy law, their compassionate attorneys can help you obtain relief, stop calls from creditors and get a fresh start.

Category: Finance/Personal Finance
Keywords: bankruptcy attorney, bankruptcy documentation, Detroit bankruptcy