HomeDefinitionsCompareDebt Legal bankruptcyThe financial definition for Legal bankruptcy:A legal proceeding for liquidating or reorganizing a business. 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. Bankruptcy viewBankruptcy viewThe argument that expected bankruptcy costs preclude firms from financing entirely with debt. Further SuggestionsImplicit Bankruptcy CostsPrepackaged bankruptcy Trustee in bankruptcy Voluntary bankruptcy Click to compare definitions of Legal bankruptcy Click to view definitions beginning le |