Corporate Finance Resources

6 Pins

an info sheet describing the benefits of credit cards

Debt Consolidation vs Bankruptcy

Bankruptcy can be brought into itself by the debtor or can be forced by the court where debt is honored anyway of debt restructuring or surrendering of an asset while debt consolidation is a form of refinancing where the entity borrows mostly unsecured family debt to pay off the old outstanding liabilities and consumer debts thus multiple debts are combined into single larger debt with favorable terms.

a diagram showing the concept of an individual's discharge from debt to another person

Bankruptcy Discharge

A bankruptcy discharge is a final court judgment that absolves a debtor of personal responsibility for certain categories of obligations. It is often called a discharge in bankruptcy. However, it is possible to refer to it as a discharge, which occurs after a bankruptcy proceeding.

the banking company's diagram shows how banks can use their accounts to make money

Bankruptcy Costs

Bankruptcy costs can be defined as the additional expenses that arise when a firm has a higher probability of going bankrupt due to increased debt obligations. These costs can be avoided by maintaining an optimum weighted average cost of capital and a healthy mix of equity and debt financing.

the types of bankrupcty are shown in green and white, along with an image of a judge's hammer

Bankruptcy

Bankruptcy refers to the legal procedure of declaring an individual or a business as bankrupt. This legal provision helps entities with no way to move forward with existing liabilities to deal with debts and start again.

Back Charge

A back charge refers to a bill presented to collect the outstanding payment from any previous period. If a customer has not paid the outstanding bill, the supplier will add the previous, pending amount and the current bill and send it to the customer.

Average Rate of Return

Average Rate of Return (ARR) refers to the percentage rate of return expected on investment or asset is the initial investment cost or average investment over the life of the project. The formula for an average rate of return is derived by dividing the average annual net earnings after taxes or return on the investment by the original investment or the average investment during the life of the project and then expressed in terms of percentage.