Consumer Bankruptcy:

Involuntary Bankruptcy

Voluntary bankruptcy is when debtors, realizing that they cannot pay their creditors, initiate bankruptcy proceedings. Conversely, involuntary bankruptcy is when creditors, in an attempt to secure what is owed, file the petition for bankruptcy. It may be done to force a debtor to repay all creditors, rather than only those that aggressively ask for payments. Another reason is to initiate the proceedings before a debtor has exhausted all of his or her assets. Involuntary bankruptcy, especially in the consumer setting, is quite rare.