What is Debt? Debt is the fund borrowed from one party by the other party i.e. debt is an obligation owed by the borrower of fund to the lender of fund. Debt is not available freely it has a cost called interest expense. Interest expense is the cost paid by the borrower for the use [...]
Bankruptcy Risk
Friday, July 22nd, 2011
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor (“involuntary bankruptcy”) in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the insolvent individual or organization).