HomeDefinitionsCompareDebt Bankruptcy viewThe financial definition for Bankruptcy view:The argument that expected bankruptcy costs preclude firms from financing entirely with debt. 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 riskBankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. 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 view Click to view definitions beginning ba |