Bankruptcy

Business / Debt / Bankruptcy: A form of debt relief, there are two kinds of bankruptcy. Personal bankruptcy: an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their debts) and that the debts and assets of a person should transfer to an appointed trustee. Company bankruptcy: companies can also fail and if this happens, the company is said to be insolvent. It may be made subject to liquidation, receivership or an administration order issued by the courts

Bankruptcy View

Business / Finance / Bankruptcy View: The argument that expected bankruptcy costs preclude firms from financing entirely with debt. MORE

Bankruptcy Cost View

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

Prepackaged Bankruptcy

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

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