Corporate Finance
Bankruptcy is a legal process through which individuals or businesses that cannot repay their debts can seek relief from some or all of their obligations. This process aims to provide a fresh start to the debtor while ensuring fair treatment to creditors, often involving the liquidation of assets or a reorganization of debt. The concept is deeply tied to financial distress, highlighting the struggles faced by entities unable to meet their financial commitments.
congrats on reading the definition of bankruptcy. now let's actually learn it.