Involuntary Bankruptcy Elmhurst NY

There are mainly two reasons why people in Elmhurst 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

Vincent F Papalia
973-645-4818
1 GATEWAY CTR
NEWARK, NJ
Kenneth A. Kopelman
212-705-7278
399 PARK AVE
NEW YORK, NY
Claude D. Montgomery
212-632-8390
620 5th Ave, Rockefeller Ctr
New York, NY
Jeffrey W Herrmann
201-845-9600
1 PARK 80 PLZ W STE (Range 6A - 6B)
SADDLE BROOK, NJ
Anthony Princi
212-468-8030
75 E 55th St
New York, NY
Glenn D. Miller
800-206-7410
14 Penn Plaza Ste 1300
New York, NY
Gerald Beckerman
516-678-2880
595 STEWART AVE
GARDEN CITY, NY
Barbara Burger
212-371-8787
595 STEWART AVE
GARDEN CITY, NY
Richard T. Walsh
11 HILLSIDE AVE
WILLISTON PARK, NY
Daniel Eugene Miller
212-424 8510
125 W 55TH ST
NEW YORK, 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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Article Source: http://www.articlesbase.com/personal-finance-articles/involuntary-bankruptcy-dealing-with-the-effects-of-the-suit-920625.html

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