Bankrupt
This occurs when someone is unable to pay their debts and creditors move to secure what monies they can from any existing assets (property) held by that person. All property is then administered by the official receiver. A bankrupt - if still able to work - will only receive an allowance to live on after payments are made to creditors |
Similar financial terms
Prepackaged bankruptcyA bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along with the bankruptcy petition.
Legal bankruptcy
A legal proceeding for liquidating or reorganizing a business.
Bankruptcy
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from the stockholders to the bondholders.
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 finaning.
Bankruptcy risk
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
Bankruptcy view
The argument that expected bankruptcy costs preclude firms from being financed entirely with debt.
