Boca Raton Bankruptcy Lawyers

Involuntary Bankruptcy

Hundreds of Americans have been overwhelmed by that anxious feeling every time their home phone rings – and not from fear of telemarketers. Each and every day, hardworking people find themselves hiding from phone calls because they have fallen behind on their bills and are now being hounded by bill collectors and creditors.

As unsettling as it is, creditors are not only willing and able to have your phone ringing off the hook, but they can do much worse damage to your credit and financial standings.

Filing an Involuntary Bankruptcy Petition

Creditors holding claims against a debtor may, under certain circumstances, initiate a Chapter 7 or Chapter 11 case by filing a petition against the debtor. This is called involuntary bankruptcy and in some cases may prevent further losses by the creditor.

How it Works

A debtor with 12 or more creditors can only be engaged in an involuntary petition if three creditors who hold unsecured claims which amount to at least $10,000 participate. In the case that less than 12 creditors exist, only one is necessary to file for involuntary bankruptcy. This creditor must have an outstanding debt in the amount of at least $10,000 that is not subject to a bona fide dispute.

Avoid involuntary bankruptcy and financial crisis. If you or someone you know is no longer able to repay their debts, contact the Boca Raton bankruptcy lawyers of Eric N. Klein and Associates, P.A. at 561.353.2800 to discuss your situation and further legal options.