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

 

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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 . . . View Full Definition

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.

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.

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.