The following link provides some insight for those folks who are considering an informal approach to BK.
While it is very uncommon for creditors to seek an involuntary BK, it does occasionally occur even with individuals (more often against corporations.)
In addition, i have been reading different blogs related to "forcing" one into a chapter 13 bankruptcy. There appears to be another glitch in the BK reform law. An individual can only seek relief through BK after undergoing the pre-bankruptcy "credit counseling." It appears that some attorneys across the country are asking how one can "force" another into a BK 7 or 13, if they do not qualify "under the law." One is required to undergo credit counseling prior to any further BK proceedings. Amusing, anyway...
While it is very uncommon for creditors to seek an involuntary BK, it does occasionally occur even with individuals (more often against corporations.)
In addition, i have been reading different blogs related to "forcing" one into a chapter 13 bankruptcy. There appears to be another glitch in the BK reform law. An individual can only seek relief through BK after undergoing the pre-bankruptcy "credit counseling." It appears that some attorneys across the country are asking how one can "force" another into a BK 7 or 13, if they do not qualify "under the law." One is required to undergo credit counseling prior to any further BK proceedings. Amusing, anyway...