Forced Bankruptcy vs. voluntary bankruptcy
May 28th, 2006 by Questions
i was wondring what’s the difference between a forced bankruptcy and a voluntary one.
i was under the impression that the only way to go banruptcy is to declare yourself.
now in case of a forced bankruptcy who is going to pay the costs of the bankruptcy, the creditor or the debtor?
i have been living out of canada for the past two years and was wondering how can i know if there was a judgment aginst me already?
One Response to “Forced Bankruptcy vs. voluntary bankruptcy”
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May 29, 2006 at 10:08 am, A licensed trustee said:
In a voluntary assignment in bankruptcy (which most bankruptcies for individuals are) a person places themself into bankruptcy.
When someone is petitioned (forced) into bankruptcy the matter is placed before a Court and the Court Orders (places) the person into bankruptcy.
Generally, if someone petitions a person into bankruptcy then they will provide the lawyer and trustee involved with a guarantee for their fees.
In a voluntary assignment the individual agrees to basic payments that will cover the fees.
It is unusual for individuals to be petitioned into bankruptcy – usually creditors prefer to pursue other methods of collecting their debts.
In regards to your question about judgements, I suggest you contact the Court nearest where you used to live and ask them if there are any Writs against you. You can also run a credit bureau report which should provide the same information.