HomeDefinitionsCompareDebt Voluntary bankruptcyThe financial definition for Voluntary bankruptcy:The legal proceeding that follows a petition of bankruptcy. 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 CostsLegal bankruptcy Prepackaged bankruptcy Trustee in bankruptcy Click to compare definitions of Voluntary bankruptcy Click to view definitions beginning vo |