act of bankruptcy Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter You Tube RSS Feed

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Search Business Glossary:

Business Definition for: act of bankruptcy
Dictionary of Banking Terms
act of bankruptcy

behavior deemed an admission of bankruptcy -generally the failure to pay obligations when due. The Bankruptcy Reform Act of 1978 simplified the filing of involuntary petitions by eliminating specific tests of bankruptcy, such as transferring assets to defraud creditors. Since then, inability to pay bills on time is sufficient grounds for filing a creditor's petition.

See also creditors' committee
Dictionary of Business Terms
act of bankruptcy

behavior indicating that a person might be judged as bankrupt. Examples of such behavior include transferring property title to another with the intent to delay or defraud creditors, and admitting that one is bankrupt.

Related Terms:
creditors' committee

group representing a class of creditors holding secured claims against a company in reorganization under Chapter 11 of the Bankruptcy Code. Large companies in bankruptcy, for example, a New York Stock Exchange listed company, may have several committees of creditors. The debtor company must offer an acceptable repayment plan to its creditors before a reorganization can be approved.

Referring Terms:
insolvency
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Back to Business Glossaries Home

AllBusiness Greatest Hits