Allison L. Friedman, P.A.
Working Quickly and Aggressively
to Collect your Debts
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May 2014 Archives

Involuntary Bankruptcy: Effective Collection Tool

Involuntary bankruptcy can be a very useful collection technique, but definitely not one to use lightly. The bankruptcy code provides that a single creditor can put a debtor in bankruptcy who has less than 12 creditors (excluding insiders) and is owed at least $10,000.00. If the debtor has more than 12 creditors, then 3 creditors may join together to file the petition as long as the collaborative debt is also at least $10,000.00.