Involuntary Bankruptcy Rye NY

There are mainly two reasons why people in Rye 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

Lee Jeffrey Mendelson
516-873-2000
Moritt Hock Et Al, 400 Garden City Plz
Garden City, NY
Andrew M Zeitlin
203-324-8111
300 ATLANTIC ST
STAMFORD, CT
David A Nicolette Jr
201-488-9080
3 UNIVERSITY PLZ
HACKENSACK, NJ
Richard Leigh Stern
631-479-2869
135 PINELAWN RD STE 120S
MELVILLE, NY
Robert Anthony Carruba
100 GARDEN CITY PLZ 100 GARDEN CITY PLAZA
GARDEN CITY, NY
Richard Roberts
914-668-6622
34 East First Street
Mount Vernon, NY
Jennifer L Coden
516-222-0007
595 STEWART AVE
GARDEN CITY, NY
Alexander G Benisatto
201-488-3900
411 HACKENSACK AVE CONTINENTAL PLAZA
HACKENSACK, NJ
Charles M Forman
201-845-1000
80 Route 4 E Ste 290
Paramus, NJ
Susan S. Cooney
585-394-5670
595 STEWART AVE
GARDEN CITY, 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.


About the Author:

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

Article Source: http://www.articlesbase.com/personal-finance-articles/involuntary-bankruptcy-dealing-with-the-effects-of-the-suit-920625.html

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