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Bankruptcy Risk

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Bankruptcy risk
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.

Bankruptcy Risk
The risk that an individual or especially a company may be unable to service its debts. Bankruptcy risk is greater when the individual or firm has little or no cash flow, or when it manages its assets poorly. Banks assess bankruptcy risk when considering whether to make a loan. It is also called insolvency risk.


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The report cites data showing people who take out the short-term, high-cost loans nearly doubled their chances of filing for Chapter 11: "These households' higher bankruptcy risk exists even when compared to households with a similar financial status.
Foreign debt was an option, given that the credit default swaps, the derivative instruments that measure investor perceptions of bankruptcy risk, have declined over the past month, showing markets' confidence in the new Cabinet, Dyankov said.
When business was booming, people like Michael Paladino — who assess bankruptcy risk — were little seen or heard.
 
 
 
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