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baddestbunny
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Simple English definitions for legal terms
debtor's petition
Read a random definition: Regulation D
A quick definition of debtor's petition:
A debtor's petition is a formal written request that a person who owes money to others can make to a court. This request asks for protection from creditors, meaning that the person cannot be forced to pay back their debts right away. This type of petition is also called a voluntary petition. It is different from an involuntary petition, which is filed by a creditor who wants to declare the debtor bankrupt.
A more thorough explanation:
A debtor's petition is a formal written request presented to a bankruptcy court by a debtor seeking protection from creditors. It is also known as a voluntary petition.
For example, if someone is struggling to pay off their debts and wants to file for bankruptcy, they can submit a debtor's petition to the court. This petition will allow them to receive protection from their creditors and work towards resolving their financial situation.
It is important to note that a debtor's petition can only be filed under Chapter 7 or Chapter 11 of the Bankruptcy Code.