act of bankruptcy definition

act of bankruptcy

Debtor's action that may cause his or her creditors to petition courts to declare him or her bankrupt (in order to force a sale of the debtor's assets to satisfy their claims). In some jurisdictions, any failure to pay an obligation (above a certain amount) on due date may constitute an act of bankruptcy.

act of bankruptcy is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.

act of bankruptcy appears in the definition of the following term: acceleration clause

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