Definition
n. the filing for bankruptcy by a debtor who believes he/she/it cannot pay bills and has more debts than assets. Voluntary bankruptcy differs from "involuntary bankruptcy" filed by creditors owed money to bring the debtor before the bankruptcy court.
Context: Used in General Law
Examples
- In practice, “voluntary bankruptcy” means the filing for bankruptcy by a debtor who believes he/she/it cannot pay bills and has more debts than assets.