Sometimes people find themselves in over their heads financially. Whether you lost your job or you suddenly have to cover an unanticipated expense, you may need to go through involuntary bankruptcy. If you’re struggling to cover even the minimum payments on your debt, a bankruptcy lawyer from Knochel Law Offices in Bullhead City, AZ, will provide the quality legal aid that you deserve.

Bankruptcy Lawyer Answers Top FAQs On Involuntary Bankruptcy

What Is Involuntary Bankruptcy?

Involuntary bankruptcy refers to cases that begin as a result of the creditors taking action, not the debtor. Both individuals and businesses can face involuntary bankruptcy. Once the creditors file a petition with the bankruptcy court, the debtor must challenge it if he or she does not want to continue with the bankruptcy proceedings.

How Many Creditors Must Petition The Court?

If the debtor owes money to more than 12 creditors, at least three of them must file a petition with the bankruptcy court to begin the process. Together, their claims must total more than $13,475.

When Do Creditors File For Involuntary Bankruptcy?

Creditors may file for involuntary bankruptcy when the debtor has not paid back what he or she owes or has accumulated more financial liabilities than assets. Most involuntary bankruptcy cases begin as Chapter 7 liquidation cases.

Who Covers The Legal Fees If The Petition Is Not Granted?

If the court dismisses a petition for involuntary bankruptcy, the petitioning creditors may be responsible for covering the attorneys’ fees, damages, and costs associated with filing. Thus, creditors are only likely to file such a petition if they believe it will be granted.

If you think you are at risk of involuntary bankruptcy, turn to Knochel Law Offices in Bullhead City to determine your options. Visit the website to learn about the personalized legal aid these bankruptcy lawyers provide, and call (928) 444-1000 to schedule an initial consultation today.