Voluntary Bankruptcy
/ˈvɒl.ənˌtɛr.i bɪŋkˈræpt.si/
Definitions
- (n.) A bankruptcy case initiated by the debtor's own petition to the court, rather than by creditors.
The company filed for voluntary bankruptcy to reorganize its debts.
Forms
- voluntary bankruptcy
- voluntary bankruptcies
Related terms
See also
Commentary
Voluntary bankruptcy emphasizes the debtor's choice to seek legal relief and typically involves filing a petition; drafting should clarify whether the case is voluntary or involuntary as it affects procedural rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.