P

Petition

Petitions are written applications made in order to get relief or remedy from the court. Making such a request for relief implies sending a special document in a specialized institution authorized to take up such deals. The reason behind a petition is to start a proceeding by which a debtor who has financial obligations can satisfy his/her creditors.

Generally, petitions can be of two types. Voluntary petitions are made by debtors who want to get an official debt-payment arrangement. By filing a petition, such debtors become relieved from their liability. On the other hand, involuntary petitions are filed by a number of creditors (and this number is regulated by statute), and are accepted only if creditors can prove the aggregate sum of their claims is higher than a predefined amount.

At the hearing, the court can propose the consideration of an individual voluntary agreement (or in short, IVA) if certain circumstances are met. Nevertheless, if an IVA cannot be applied, the court can consider making a bankruptcy order or decide about the petition as follows:

• dismissing it if the assets of the debtor exceed his or her liabilities



• adjourn it if the debts cannot be legally enforced



• stay the petition if a substitute way of dealing with the debtor's debts seems to be more suitable in that pecific situation