Bankruptcy

Bankruptcy is a legal document that allows a firm to avoid major debt obligations and void union contracts in order to survive and regroup as a firm. There are five major types: chapter 2, chapter 10, and chapter 11.

Definition

According to the Strategic Management by David and David (15th edition),

Bankruptcy. A legal document that allows a firm to avoid major debt obligations and void union contracts in order to survive and regroup as a firm. There are five major types: chapter 2, chapter 10, and chapter 11.