Business / Accounting / Bankrupt: If an individual or unincorporated company has greater liabilities than it has assets, the person or business can petition for, or be declared by its creditors, bankrupt. In the case of a limited company or corporation in the same position, the term used is insolvent .
Business / Finance / Bankruptcy View: The argument that expected bankruptcy costs preclude firms from financing entirely with debt. MORE
Business / Accounting / Bankruptcy: Situation where a person files with the court to be released from debts. May entail sale of the debtor’s property and/or a court-approved plan for repayment of debts. MORE
Business / Finance / Bankruptcy Cost View: The argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt financing. MORE
Business / Debt / Trustee In Bankruptcy: One appointed by a bankruptcy court, and in whom the property of the bankrupt vests. The trustee holds the property in trust, not for the bankrupt, but for the creditors. MORE
Business / Finance / Prepackaged Bankruptcy: A bankruptcy in which a debtor and its creditors pre-negotiate a plan of reorganization and then file it along with the bankruptcy petition. MORE