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A "petition" or "petition for relief" is the document filed to initiate a bankruptcy case under the Bankruptcy Code. A bankruptcy petition may be either voluntary or involuntary. Once the petition has been filed with the bankruptcy court, the Court will send creditors a "Notice of Commencement of Case" informing them that a particular company filed for bankruptcy protection. A month or two after the bankruptcy petition is filed, a representative of the debtor company must attend a hearing presided over by a bankruptcy trustee. This hearing is called the First Meeting of Creditors. At this meeting, the trustee will ask the debtor questions under oath regarding the content of their bankruptcy schedules, and about assets, liabilities and other matters. Creditors are invited to attend this meeting, and are normally allowed to ask questions that the debtor must answer under oath. Edited by Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore. |
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