Definition - What does Bankruptcy Petition mean?
A bankruptcy petition is a document filed during bankruptcy proceedings, either by the debtor or one of the creditors, the principal function of which is to institute an agreement where payments outstanding will be paid over time.
Justipedia explains Bankruptcy Petition
A bankruptcy petition gives a snapshot of the debtor's assets and liabilities, and lays down how certain debts owed to a specific creditor will be treated and paid. The bankruptcy petition will state the exact amount that needs to be repaid, and the time frame and amounts in which it is expected to be paid. If the bankrupt person files the petition, then it is considered a voluntary petition. However, if the debtor is the one who filed the petition, then it is referred to as an involuntary petition.