Definition

Bankruptcy

Bankruptcy occurs when a company is unable to pay its debts as they become due, or has more debts than assets. It's a formal procedure in which an appointed trustee in bankruptcy takes possession of a business's assets and disposes of them in an orderly fashion.


Bankruptcy is a condition in which a firm (or individual) is unable to meet its (his) obligations and, hence, its (his) assets are surrendered to a court for administration.


Bankruptcy is the legal nonpayment of financial obligations.


 

Bankruptcy is 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.


Bankruptcy is the legal procedure for individuals and business that cannot pay their debts.

Webster Dictionary Meaning

1. Bankruptcy
- The state of being actually or legally bankrupt.
- The act or process of becoming a bankrupt.
- Complete loss; -- followed by of.
Share it:  Cite

More from this Section

  • Group cohesiveness
    Group cohesiveness is the degree to which group members are attracted to one another and ...
  • Aging schedule
    Aging schedule is a table of accounts receivable broken down into age categories (such ...
  • Fundamental forecasting
    Fundamental forecasting— forecasting based on fundamental relationships between economic ...
  • World Bank
    The International Bank for Reconstruction and Development (IBRD), also referred to as ...
  • Consumer Price Index (CPI)
    Consumer Price Index (CPI) is an index that measure movements in the average price of ...