Voluntary vs. Involuntary Bankruptcy

Bankruptcy Attorney in Kansas City, MO

Kansas Bankruptcy Lawyers

The legal procedure known as bankruptcy involves provides you with a way to eliminate your debts. The purpose of filing for bankruptcy is to provide the debtor with a fresh start unencumbered by previous obligations and to settle creditor claims fairly by allocating the debtor’s remaining assets to the creditors equitably.

The bankruptcy process can be started by the debtor themselves, which is known as a voluntary bankruptcy, or it can be started by a petition filed by the debtor’s creditors, which is known as an involuntary bankruptcy. 

At the Roach Bankruptcy Center, LLC in Kansas City, Missouri, we are bankruptcy lawyers who assist clients in overcoming onerous financial burdens and getting out from under burdensome financial obligations. We have many years of experience helping individuals in getting out of challenging financial situations, and we will be able to assist you as well. Contact with one of our Kansas City consumer bankruptcy lawyers as soon as possible before you file for bankruptcy in order to obtain any additional information.

Why do I need a Bankruptcy Attorney in Kansas City, MO.?

voluntary versus involuntary bankruptcy kansas city, mo A bankruptcy attorney is an attorney who focuses on advising clients on bankruptcy, drafting legal documents for clients, and representing clients in court during bankruptcy proceedings.

As your guide through the bankruptcy procedure, our Missouri bankruptcy attorney can advise you on the following:

  • Whether to declare bankruptcy or not
  • Which kind of bankruptcy must be filed?
  • How the bankruptcy process operates
  • Which court-issued forms require completion?
  • Which debts are eligible for reduction or cancellation?
  • Whether you will be able to keep your home, vehicle, and other property following the conclusion of the bankruptcy case.

In general, a bankruptcy attorney can steer you in the right legal direction. If you handle your bankruptcy case on your own, you may make legal mistakes with long-term financial consequences.

If you retain our esteemed Kansas City bankruptcy lawyer, you can expect the following:

  • A legally enforceable agreement between you and the attorney. Almost certainly, the agreement will include a summary of the attorney’s services.
  • A description of payment arrangements. For example, will the attorney charge an hourly rate or a flat fee? How much will it cost?
  • Ongoing discussions. You will discuss how your attorney handled your case.
  • A list of documents. The attorney should provide you with a complete list of the documents required for your bankruptcy case.

Bankruptcy concerns? Our Kansas City bankruptcy attorneys can help! Call us today for free bankruptcy counseling.

Voluntary and Involuntary Bankruptcy: The Difference

It is possible for your financial situation to spiral out of control to the point where you will need to decide whether or not to seek protection by filing for bankruptcy. It is challenging enough to arrive at this conclusion all on one’s own, but there are times when others will arrive at this conclusion for you. The Bankruptcy Code applies to bankruptcies that are filed voluntarily as well as those that are filed involuntarily.

Voluntary Bankruptcy

A voluntary bankruptcy filed under Section 301 of the United States Bankruptcy Code differs from a traditional lawsuit in that there is relief available immediately upon filing a voluntary bankruptcy. When an individual voluntarily files for bankruptcy, all of the protections related to bankruptcy are immediately available and are put into place automatically. A voluntary petition for bankruptcy can be submitted by any individual or legal entity, regardless of whether or not the petitioner is actually insolvent. When someone files for bankruptcy, the fact that they owe money is not necessarily the only reason why they do so in many cases.

Involuntary Bankruptcy 

A creditor can file an action under Section 303 of the United States Bankruptcy Code to compel a debtor, such as an individual or a business entity, to declare bankruptcy. This provision applies to both personal and business bankruptcies. This option is rarely used in the case of an average debtor because the petitioner is required to demonstrate the debtor’s insolvency prior to the beginning of the bankruptcy process. It is most frequently used in situations in which the debtor is engaged in other questionable behavior or is frittering away their assets.

The bankruptcy code prohibits the transfer of assets out of the bankruptcy estate under certain circumstances. When circumstances like these arise, it is in everyone’s best interest to bring the debtor before the bankruptcy court so that the actions of the debtor can be monitored and managed. Involuntary bankruptcy is a legal process that enables the petitioner to reclaim assets that were improperly transferred to another party.

Facing Imminent Foreclosure?

We can help save your home! Even if time is running out, we’ll find a way. Find out how by speaking with our bankruptcy lawyer in Kansas City, Missouri today.

Some Examples Of Debtors Who Could Be Forced Into Involuntary Bankruptcy

In most cases, the only types of debtors who could be forced into bankruptcy as a result of an involuntary filing are those who are qualified to seek protection under either Chapter 7 or Chapter 11 of the Bankruptcy Code. Farmers, corporations that are not considered to be businesses, and commercial corporations all fall into this category’s exceptions.

If you have any questions about voluntary or involuntary bankruptcy, our attorneys can help. Call our Missouri bankruptcy lawyers now to learn more!

Call our Kansas City Bankruptcy Lawyers Now!

Are you considering bankruptcy? If you have reached the point where bankruptcy filing of any kind appears to be unavoidable, you need to be able to turn to someone you can trust for information that is both knowledgeable and comprehensive regarding the alternatives available to you. When you reach this point in your financial situation, consulting with an experienced bankruptcy attorney in our law firm, who has handled various bankruptcy cases, can be of great assistance in determining what steps to take next toward debt relief.

Contact our knowledgeable attorneys at the Roach Bankruptcy Center, LLC, to receive an objective assessment of the different bankruptcy options available to you. To get started right away, either give us a call now or get in touch with us online. Let us talk about your problems before you decide to file for bankruptcy. Call now for free legal bankruptcy counseling.

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