Voluntary bankruptcy is a bankruptcy proceeding that a debtor, who knows that they cannot satisfy the debt requirements of its creditors, initiates with a court.
Voluntary bankruptcy typically commences when and if a debtor finds no other solution to their dire financial situation.
Involuntary bankruptcy is a legal proceeding through which creditors request that a person or business go into bankruptcy.
Creditors can request involuntary bankruptcy if they think that they will not be paid if bankruptcy proceedings don't take place.
Filing a petition under chapter 7 "automatically stays" (stops) most collection actions against the debtor or the debtor's property. 11 U.S.C. § 362.
But filing the petition does not stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations.