What is the difference between a voluntary and involuntary bankruptcy filing?

Voluntary and involuntary bankruptcy filings refer to two different types of bankruptcy procedures in Oklahoma. A voluntary bankruptcy filing is one that is initiated by the debtor, meaning the person owing the debt. In a voluntary bankruptcy filing, the debtor is typically seeking relief from creditors and protection from further action. With a voluntary filing, the debtor is typically in control of the entire process and is the one who decides to file for bankruptcy. An involuntary bankruptcy filing, on the other hand, is initiated by one or more of the debtor’s creditors. This is usually done when the debtor has failed to pay off a debt or when the debtor’s assets are insufficient to satisfy all the debts he or she owes. In this case, the creditors are seeking to recover at least some of what is owed to them by filing for bankruptcy against the debtor. The key difference between voluntary and involuntary bankruptcy filings is that, in the former, the debtor is in control of the entire process, whereas in the latter, the creditors are in control. In addition, when an involuntary bankruptcy filing is in process, the debtor may find it difficult to defend against it.

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What is the difference between a voluntary and involuntary bankruptcy filing?

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