Bankruptcy

Bankruptcy

An involuntary bankruptcy case is initiated when one or more creditors file a petition and a summons with the clerk of the U.S. Bankruptcy Court. The debtor has 20 days to file objections. If that happens, the case can go to trial to determine if the filing was appropriate. If the debtor does not object, the bankruptcy proceeds in the same fashion as a voluntary case. An involuntary bankruptcy can provide relief in a number of ways, as it forces a debtor to confront all his creditors at once, instead of giving money only to those who press the hardest. It also keeps a debtor from draining all his assets before finally giving up and filing for bankruptcy.

In the case presented, the petition should be granted to Beren. Entering into a partnership is a risky venture. In this situation major financial difficulties arose and Beren was unable to obtain assistance from Elliot and Mannino to acquire additional financing in order to pay the debts of the partnership.

Seal of the United States bankruptcy court. Church...

Debtors Prison, The Clink Prison Museum, Bankside,...

Bankruptcy, I wonder why?

Beren should not be required to take the fall for the entire group. Although this is the beneficial solution for the "innocent" debtor, namely Beren, there are some important initial considerations that may affect the ultimate decision on filing, which include whether or not the debts are dischargeable as well as each individual's financial future after the bankruptcy. These future effects include the possible effect on prospective employment as well as each partner's credit record for a substantial period of time after the filing. The partners went into the partnership together and should therefore share in the responsibility of their actions. If the creditors cannot be reimbursed by any other means, the bankruptcy should be a consideration and should be granted as the other two partners refuse to take part...