Involuntary Bankruptcy Sunnyside NY

There are mainly two reasons why people in Sunnyside 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

Howard Supplee Steel
212-808-7946
101 PARK AVE
NEW YORK, NY
Carol S Eisenberg
516-222-1331
595 STEWART AVE
GARDEN CITY, NY
James Darrell Higgason Jr.
713-220-4430
450 LEXINGTON AVE
NEW YORK, NY
Sabrina Carmen Fernandez
516-222-1350
595 STEWART AVE
GARDEN CITY, NY
Robert H. Yu
350 5TH AVE STE 3304
NEW YORK, NY
Gabriela Silvia Cordo
900 3RD AVE FL 36
NEW YORK, NY
Leonard Sidney Baum
212-969-3420
1585 BROADWAY
NEW YORK, NY
James A. Florack
450 LEXINGTON AVE
NEW YORK, NY
Matthew Francis Kye
1 EXPRESSWAY PLZ STE 114
ROSLYN HEIGHTS, NY
David Ian Pankin
48 WILLOUGHBY ST
BROOKLYN, 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:

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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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