The English Statute of Bankrupts was enacted in 1542 during the reign of Henry VIII. This act allowed the creditors to drive the debtors to involuntary bankruptcy by taking actions against them, sell their property and get themselves imprisoned to satisfy the debts. A lot of modifications have occurred over the last 450 years. Debtor’s prisons have been removed, but involuntary bankruptcy still exists.
If a creditor proves that the debtor owes an unsecured debt of at least $14,425 to less than twelve creditors, he can bring an involuntary bankruptcy against the debtor. If more than twelve creditors are owed money, action must be brought by at least three of them in concert.
Although in an involuntary bankruptcy, only Chapters 7 and 11 are available, mostly every individual debtor is a fair game, excluding family and commercial farmers. Involuntary bankruptcy has many defenses that are strongest if brought to the attention of the court as soon as possible.
If you are also one of the debtors who is driven to involuntary bankruptcy and wants to fight it, you can contact the Recovery Law Group at www.recoverylawgroup.com or call on 888-297-6203, for their guidance in navigating through the process.