{"id":890,"date":"2019-10-22T13:19:36","date_gmt":"2019-10-22T13:19:36","guid":{"rendered":"https:\/\/www.karinalucidlaw.com\/?p=890"},"modified":"2021-02-18T23:20:31","modified_gmt":"2021-02-18T23:20:31","slug":"new-jersey-involuntary-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.karinalucidlaw.com\/new-jersey-involuntary-bankruptcy\/","title":{"rendered":"New Jersey Involuntary Bankruptcy"},"content":{"rendered":"

In New Jersey, what is an involuntary bankruptcy? There is a provision in the bankruptcy code<\/a> allowing a creditor to file bankruptcy for a debtor. This is a rare occurrence, but it can be done. Debtors have to deal with debt collection efforts and figuring out debt settlement solutions. They may also have to consider the possibility of having one of their creditors forcing them to file for bankruptcy.<\/p>\n

Involuntary Bankruptcy<\/h2>\n

Bankruptcy laws are comprehensive. There are different types of bankruptcy appropriate for different circumstances. Individuals can file for personal bankruptcy, while businesses can file for corporate bankruptcy. There is also a bankruptcy chapter to suit every situation. Many bankruptcy filings are under Chapter 7<\/u><\/a>\u00a0or Chapter <\/u>13<\/u><\/a>, which mainly deal with consumer bankruptcy.<\/p>\n

The New Jersey bankruptcy law acknowledges creditors\u2019 rights. As such, one of the provisions for them makes it possible for creditors to force their debtors to declare themselves bankrupt. An involuntary bankruptcy occurs when a creditor exercises this right.<\/p>\n

Involuntary bankruptcies can be filed against both individuals and businesses. They are filed by creditors in their effort to recover the money that their debtors are unable to pay.<\/p>\n

An involuntary bankruptcy is typically useful in situations where the debtor supposedly has the means to make debt payments, but is seemingly avoiding it for some reason. Creditors aren\u2019t likely to file involuntary bankruptcy if they believe their debtors to be in true financial distress. For instance, if the debtor does not have enough assets, the creditor would probably think it pointless to force the issue in a bankruptcy court. On the other hand, successful involuntary bankruptcy cases result in the bankruptcy judge ordering the debtor to pay back the money owed.<\/p>\n

Filing a Response<\/h3>\n

What can you do if someone files an involuntary bankruptcy against you? In New Jersey, you can definitely respond to it and use one of various valid reasons for doing so. Here are some possibilities:<\/p>\n