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.