how voluntary bankruptcy works
voluntary bankruptcy is a bankruptcy proceeding that a debtor who knows that they cannot satisfy the debt requirements of its creditors initiates with a court voluntary bankruptcy typically commences when and if a debtor finds no other solution to their dire financial situation filing for voluntary bankruptcy differs from filing for involuntary bankruptcy which occurs when one or more creditors petitions a court to judge the debtor as insolvent unable to pay voluntary bankruptcy and other forms of bankruptcyin addition to voluntary bankruptcy other forms of bankruptcy exist including involuntary bankruptcy and technical bankruptcy bankruptcy filings vary among states which can lead to higher or lower filing fees depending on the location of the filing creditors request involuntary bankruptcy of debtors when they will not be paid without bankruptcy proceedings and need a legal requirement in order to force the debtor to pay a debtor must have attained a certain level of debt for a creditor to request an involuntary bankruptcy this level will vary depending on if the debtor is an individual or corporation in a technical bankruptcy an individual or company has defaulted on their financial obligations yet this has not been declared in court voluntary bankruptcy and corporations