Voluntary Bankruptcy Filing

Last Updated: Jun 7, 2019

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A voluntary bankruptcy filing occurs when a company files a bankruptcy petition (most often Chapter 11 or Chapter 7) before it is forced into bankruptcy by the legal action of its creditors. The voluntary bankruptcy filing lets a company choose where the legal proceedings take place and can provide the company with more control in the proceedings. The voluntary bankruptcy filing is intended to create an orderly and equitable settlement of the company's obligations.