HomeDefinitionsCompareDebt Bankruptcy riskThe financial definition for Bankruptcy risk:The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Similar MatchesBankruptcy cost viewBankruptcy cost viewThe 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% leverage financing. Bankruptcy viewBankruptcy viewThe argument that expected bankruptcy costs preclude firms from financing entirely with debt. Implicit Bankruptcy CostsImplicit Bankruptcy CostsOpportunity costs incurred prior to the bankruptcy process such as the loss of sales or financing. Further SuggestionsLegal bankruptcyPrepackaged bankruptcy Trustee in bankruptcy Voluntary bankruptcy Click to compare definitions of Bankruptcy risk Click to view definitions beginning ba |