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Definition of Legal bankruptcy
A legal proceeding for liquidating or reorganizing a business.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The reorganization or liquidation of a firm that cannot pay its debts.
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)
A federal Act shielding employers from liability if they have made
Value at which a company's shares are recorded in its books.
The deposit of cash and permitted securities, as specified in the bond indenture, into an
Investments that a regulated entity is permitted to make under the rules and regulations
Legal Reserve Requirement
See reserve requirement.
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
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