voluntary bankruptcy

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Voluntary bankruptcy

The process where the debtor petitions the court for bankruptcy protection. Also see Involuntary bankruptcy.

Voluntary Bankruptcy

A situation in which a debtor files for bankruptcy with a court. That is, no creditor forces the debtor into voluntary bankruptcy. A debtor may file for bankruptcy if it finds repaying its debts difficult or impossible. There are different kinds of voluntary bankruptcy. A company may file for liquidation, where a company ceases operations and sells its assets to repay creditors as far as possible. Likewise, a company may file a reorganization plan where some or all debts are forgiven and the company puts itself on a path toward solvency. See also: Chapter 7, Chapter 11, Chapter 13.

voluntary bankruptcy

A bankruptcy initiated by the organization entering the bankruptcy rather than by that organization's creditors. Organizations generally enter voluntary bankruptcy to protect themselves from creditors' claims. Compare involuntary bankruptcy. See also Chapter 7, Chapter 11.
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VOLUNTARY bankruptcies have risen by more than a quarter in the West Midlands in just 12 months - but the worst is still to come, a new survey reveals.
Although similar data is not available for voluntary bankruptcies, it is likely that debts owed per case are at similar levels, but the returns to creditors will be minimal.
Latest Government figures show the number of voluntary bankruptcies in the North East rose nearly 15% in the last year.

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