Although we often think of Herman’s Hermits when we think of Henry the VIII we should note that it was during his reign that the English Statute of Bankrupts was enacted. This 1542 act allowed creditors to bring action against debtors so that they be involuntarily bankrupted, their properties sold and they themselves imprisoned to satisfy their debt. There have been a lot of changes over the last 450 years. Debtor’s Prisons, of course, have been abandoned, but involuntary bankruptcy is still alive and well.
To bring an involuntary case against a debtor, a creditor must show that the debtor owes at least *$14,425 in unsecured debt to less than twelve creditors. If the debtor owes money to more than twelve creditors (certain kinds of creditors don’t count), at least three of those must work in concert to bring action.
Although only Chapters 7 and 11 are available in involuntary bankruptcy mostly all individual debtors are fair game, except for commercial and family farmers. There are defenses to involuntary bankruptcy which are strongest when brought to the court’s attention as soon as possible.
If you are the subject to an involuntary bankruptcy and wish to fight it, please contact the Jacksonville Bankruptcy Attorney quickly at 904-685-1200 so we can attempt to stop the case against you or at least help navigate you through it so as to protect as much property as possible.
*amount changes annually.