Involuntary Bankruptcy East Setauket NY

There are mainly two reasons why people in East Setauket opt to go to court to file a financial bankruptcy petition. Some find themselves doing this out of the poor spending habits that they have been developed over the years. While for others, bad luck just catches up with them.

Local Companies

Kerie Stone
(631) 471-7171
258 Hawkins Avenue, Suite I
Ronkonkoma, NY
Robert Philip Santoriella
330 VANDERBILT MOTOR PKWY STE 400
HAUPPAUGE, NY
Stuart M Sheiman
203-372-5565
2600 PARK AVE UNIT 5D
BRIDGEPORT, CT
Michael T Feola
203-374-1173
3296 MAIN ST
BRIDGEPORT, CT
Vincent M Marino
203-368-0211
1115 BROAD ST
BRIDGEPORT, CT
Robbie L. Vaughn, Esq.
631-780-4758
70 West Main Street
East Islip, NY
Richard Leigh Stern
631-479-2869
135 PINELAWN RD STE 120S
MELVILLE, NY
Ross Marshall Chinitz
203-254-4461
1698 Post Road East
Westport, CT
Peter Bryan Katzman
425 BROADHOLLOW RD STE 315
MELVILLE, NY
Ronald D. Weiss
734 WALT WHITMAN RD STE 203
MELVILLE, NY
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Involuntary Bankruptcy- Dealing With The Effects Of The Suit

Author: Peter Gitundu

There are mainly two reasons why people opt to go to court to file a financial bankruptcy petition. Some find themselves doing this out of the poor spending habits that they have been developed over the years. While for others, bad luck just catches up with them. In such cases most people will go into voluntary insolvency which in simple terms is the debtor going to court to file a petition.



However, there is also the involuntary way of filing for bankruptcy. This is done by creditors who will normally come together and file a lawsuit on the debtor. This is known as involuntary insolvency. It begins with the creditors filing a petition and summons with the U.S court. The debtor will be served with a notice on the filed petition and will be expected to forward any objections within twenty days.



In case the debtor has no objections, the case will go on trial. Since this is mainly done in cases of business and not individuals, there are mainly two chapters under which the case can be filed. These are mainly chapter 11 and the liquidation chapter. Under the liquidation chapter, the debtor will be required to close down the business and have the assets liquidated while under chapter 11, the debtor will be given a chance to reorganize the business and continue working to pay off debts.



In chapter 11, the day-to-day running of the business will be handled by the debtor while all finances are handled by a trustee who is appointed by the court. Due to the final effects that the involuntary bankruptcy might have, the debtor would rather seek the courts help voluntarily.


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