# Voluntary Bankruptcy

**IRI:** https://folio.openlegalstandard.org/R7qVuIk7an16npW6AGq2N1x

## Labels

**Preferred Label:** Debtor-Initiated Liquidation

**Alternative Labels:**

- Debtor-Initiated Bankruptcy
- Self-Initiated Insolvency
- Voluntary Insolvency
- Voluntary Liquidation

## Definition

Voluntary Bankruptcy occurs when a debtor initiates bankruptcy proceedings by filing a petition with the bankruptcy court. It contrasts with Involuntary Bankruptcy, where creditors initiate the process against a debtor.

## Sub Class Of

- https://folio.openlegalstandard.org/RCzNI1QoW4KZCDSoIqjFHFj

**Deprecated:** False