Bankruptcy petition definition

bankruptcy petition definition

When you file for bankruptcy, you must disclose all of your financial information on official bankruptcy forms. The bankruptcy petition is the first of many forms you’ll need to complete (although the entire packet is often referred to as the “petition”). Your bankruptcy case starts when you file the petition with the clerk of the bankruptcy court. A petition will fall into one of two categories: a voluntary or an involuntary petition. A debtor who personally wants to file for bankruptcy will file a voluntary petition. The debtor voluntarily chooses to enter into bankruptcy. By contrast, creditors can force a Author: Cara O'neill, Attorney. Mar 05,  · When a company petitions for bankruptcy, everything it owes is categorized as either prepetition debts, incurred prior to filing, or post-petition liabilities, assumed after the bankruptcy filing.

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