voluntary petition

A voluntary petition is a formal request made by an individual or a business to a bankruptcy court, asking for legal protection because they are unable to pay their debts. This process allows the filer to initiate bankruptcy proceedings on their own, often to reorganize or liquidate assets to settle debts. It’s a way for financially struggling entities to seek relief and a fresh start, providing structured legal pathways to handle obligations. The voluntary nature means the filer actively chooses to pursue bankruptcy rather than being compelled by creditors.