Boston Bankruptcy Attorney

Involuntary Bankruptcy

Each day, hundreds of Americans are overtaken by an anxious feeling of dread whenever the home phone rings. This terror is not from fear of telemarketers but rather a fear of creditors. Each and every day, hardworking individuals find themselves hiding from phone calls because they have fallen far behind on their bills and are being threatened and hounded by bill collectors and creditors.

As unsettling as it is, creditors are ready and willing and able to make phone calls to debtors at all times. Not only that, they are able to do much worse things to a person’s credit rating and financial standing.

Creditors that hold claims against a debtor may, under certain limited 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 to the creditor.

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

Contact a Boston Bankruptcy Lawyer

If you are facing a financial crisis or would like to learn more about the possibility of involuntary bankruptcy being brought against you, contact a Boston bankruptcy lawyer. If you are in this situation or are no longer able to pay off your bills, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 1-888-975-5346 today.