What is the purpose of brankruptcy and insolvency?
Share
What is the purpose of brankruptcy and insolvency?
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Verified answer
Answer:
Bankruptcy law serves three basic purposes: (1) to solve a collective action problem among creditors in dealing with an insolvent debtor, (2) to provide a “fresh start” to individual debtors overburdened by debt, and (3) to save and preserve the going-concern value of firms in financial distress by reorganizing rather ...
Explanation:
I hope it's help
Mark me as branliest
Correct me if I'm wrong thanks
#Carryonlearning