Glossary Term: BANKRUPTCY
Definition(s) for BANKRUPTCY:
1. ) the financial status of a frim that has been legally judged either to have debts that exceed assets or to be unable to pay its bills. Formal bankruptcy may result in reorganization and continued operation of the firm or it may require liquidation and distribution of proceeds. Either way, security owners especially shareholders are likely to suffer losses.
2. ) State of insolvency or an organization--in other words, an inability to pay debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors petition to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the objective is an orderly and equitable settlement of obligation. See also Chapter 7, Chapter 11, Chapter 13. Barter
3. ) A legal proceeding declaring that an individual is unable to pay debts Chapters 7 and 13 of the federal bankruptcy code govern personal bankruptcy
4. ) a federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay
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See Also:
BANKRUPTCY ACT OF 1898, BANKRUPTCY ACT OF 1933, BANKRUPTCY ACT OF 1934, BANKRUPTCY AMENDMENTS OF 1984, BANKRUPTCY CODE, BANKRUPTCY COURT, BANKRUPTCY ESTATE, BANKRUPTCY PETITION, BANKRUPTCY REFORM ACT OF 1978, BANKRUPTCY REFORM ACT OF 1994, BANKRUPTCY TAX ACT OF 1980, BUSINESS BANKRUPTCY, INVOLUNTARY BANKRUPTCY, NATIONAL BANKRUPTCY REVIEW COMMISSION, NON-BUSINESS BANKRUPTCY, PERSONAL BANKRUPTCY, PREPACKAGED BANKRUPTCY, RETIRED BENEFITS BANKRUPTCY PROTECTION ACT, STRAIGHT BANKRUPTCY
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