Creditors do have the right to file bankruptcy for you. The fact that the creditor is suggesting that you file is indicative that it's probably your best option. The best thing to do is to schedule a consultation with a bankruptcy attorney to see if it's your best solution.

Answer Applies to: Colorado
Replied: 12/28/2011

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I will not give advice, especially with such meager facts, as to type and amount of debt, but as a general matter, it is not that easy to file a successful involuntary bankruptcy against someone. If there are less than 12 creditors total, then 1 creditor can file it, but for 12 or more creditors, it requires three creditors to agree to file together. The creditor has to figure out how many creditors you have and how much you owe them. The debt must be more than $14,425 in claims that are unsecured and undisputed. If the case is filed in bad faith, you might be the one who gets damages.

Answer Applies to: New Jersey
Replied: 12/22/2011

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It is difficult for creditors to file an involuntary bankruptcy. If you tell a creditor to no longer contact you they must stop or you can file a lawsuit for illegal creditor collection. The creditor, on the other hand, can sue you on the debt. Make arrangements to pay the debt or consider consulting an attorney about your rights regarding bankruptcy.

Answer Applies to: California
Replied: 12/22/2011

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It is rare for a credtor to file an involuntary bankruptcy against a debtor and is very risky. In the only case I have been aware of in Colorado, the creditor and creditor's attorney were sanctioned.

Answer Applies to: Colorado
Replied: 12/22/2011

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Involuntary bankruptcies are extremely rare and it sounds like an empty threat. I would not worry much about a creditor filing such a case unless you have substantial assets and your debts are also substantial. Obviously, you should have a consultation with an attorney.

Answer Applies to: California
Replied: 12/22/2011

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That doesn't make any sense. Your creditor cannot file a bankruptcy against you. If they file bankruptcy then that debt becomes part of their estate and the trustee may attempt collection (or hire outside entity to do so). You can notify the creditor in writing that you do nwant them to contact you anymore unless they are moving forward with legal action. If they continue they are in violation of the fair debt collection practices act.

Answer Applies to: Utah
Replied: 12/22/2011

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While it is possible for an involuntary bankruptcy to be filed, I doubt that the creditor was serious. This sounds like the kind of thing unscrupulous collection agents say to scare people. A creditor would only file an involuntary bankruptcy if it thought it stood a good chance of getting at your assets to pay your debt to it. Frankly, it is much more efficient for a creditor to sue you and try to collect through the state court. This would be cheaper and easier for the creditor. Moreover, the creditor would not have to share your assets with all your other creditors. In certain circumstances, you would be permitted to sue when a collection agent that threatens action it has no intention of taking. You should call a bankruptcy attorney who also handles Fair Debt Collection Practices Act cases to discuss this.

Answer Applies to: Wisconsin
Replied: 12/22/2011

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If a creditor believes you have assets, they can file an involuntary bankruptcy to force you into bankruptcy. If you qualify, you can file a bankruptcy first or you can wait til they file and retain an attorney to defend yourself in court.

Answer Applies to: New York
Replied: 12/22/2011

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Under certian circumstances creditors can force a debtor into bankruptcy. However, the collection caller you talked to is probably just trying to intimidate you. Whether or not bankruptcy is your best option right now depends on many factors, you should definitely contact a bankruptcy attorney, most offer free initial consultations.

Answer Applies to: Maryland
Replied: 12/22/2011

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It is just a threat. An involuntary bankruptcy takes a lot of time and effort. You should consult with an attorney to discuss your options.

Answer Applies to: Florida
Replied: 12/22/2011

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Certain creditors may file an involuntary bankruptcy to keep you from hiding, misusing, or dissipating assets. But those creditors must meet Cain conditions. Most of the time they simply don't do so because its not in their best interest.

Answer Applies to: Illinois
Replied: 12/21/2011

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Send a certified letter to the collection agency, return receipt collected and say the following: "You are hereby notified that the undersigned, pursuant to 15 U.S.C., Section 1692, advises you to immediately cease all telephone calls to me or anyone associated with me concerning this account. Furthermore, be advised that the debt is disputed and a demand is hereby communicated to you that all documentation in your possession which you believe proves the undersigned's liability on the debt shall be sent to me within thirty (30) days of this notice to the following address."

Answer Applies to: Ohio
Replied: 12/21/2011

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They cannot do that you are the only one who can file a personal Bankruptcy.

Answer Applies to: Georgia
Replied: 12/21/2011

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There is such a thing as an involuntary bankruptcy. It generally done against business.

Answer Applies to: California
Replied: 12/21/2011

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A creditor has the right to place you in involuntary bankruptcy. That is something to avoid. You have a legal emergency. You need to see a lawyer not tomorrow or next week, but today. You want a lawyer to see if you should file, and if you should, you want to be in control and not have the creditor put you there.

Answer Applies to: Georgia
Replied: 12/21/2011

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If it is a personal debt then the creditor cannot file a bankruptcy on your behalf. Only businesses can be forced into bankruptcy.

Answer Applies to: Colorado
Replied: 12/21/2011

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Boy, I thought I had heard every scurrilous lie that a bill collector could invent. But you have added a new whopper to my collection. What a great lie! It could almost be true. but it isn't. There is a thing called "Involuntary Bankrupty", but it costs a whole lot of money to file. It also requires more than one creditors' signature. Best of all you will have a glorious time suing them for damages in the unlikely event that they do attempt to file and involuntary bankruptcy against.

Answer Applies to: Ohio
Replied: 12/21/2011

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Involuntary bankruptcy cases require cooperation between a number of creditors. They are extremely rare. My guess is that this is an idle threat.

Answer Applies to: Minnesota
Replied: 12/21/2011

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It is possible to defend against an involuntary bankruptcy.

Answer Applies to: Massachusetts
Replied: 12/21/2011

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While it is possible for a creditor to file an involuntary bankruptcy, if you have more than twelve creditors, they would need to have at least two other creditors join in filing the involuntary bankruptcy. Unless you have assets, then all that a creditor will achieve in filing you into bankruptcy is having their debt discharged and collect nothing. What is likely going on is they are trying to frighten you into paying by making threats they have no intention on following through with.

Answer Applies to: California
Replied: 12/21/2011

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You can file an objection and try to dismiss the case. If the case is already filed, you might as well go through with it if you cannot repay your debts.

Answer Applies to: Florida
Replied: 12/21/2011

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Without more facts, I don't know what if any other options you have. For a detail analysis of her personal finances and options, you might want to meet with either a financial planner of a bankruptcy attorney. Bankruptcy is definitely an option when you have debts you cannot pay, I just don't know if that is your only option.

Answer Applies to: California
Replied: 12/21/2011

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