Business Bankruptcy Petition

A Business Bankruptcy Petition is a legal document filed by a company to initiate bankruptcy proceedings. It includes information about the company’s assets, liabilities, and creditors, as well as the type of bankruptcy being filed (Chapter 7, 11, or 13). The petition is submitted to the bankruptcy court and serves as the official request for bankruptcy protection. Once the petition is filed, an automatic stay goes into effect, which prevents creditors from taking any further collection actions against the company. The filing of a Business Bankruptcy Petition is the first step in the bankruptcy process and sets the stage for the company’s financial restructuring or liquidation.