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Stigma of Bankruptcy: Comparing a Corporation and an Individual

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Explain why the stigma attached to a corporation filing bankruptcy is different than that of an individual filing bankruptcy.

© BrainMass Inc. brainmass.com March 21, 2019, 9:46 pm ad1c9bdddf
https://brainmass.com/business/financial-distress-and-bankruptcy/stigma-bankruptcy-corporation-individual-filing-390535

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There is a definite stigma attached to corporations that file for bankruptcy. When an individual files, it is seen as more of a private matter, and possibly a sign that circumstances became out of control for the individual, causing them into a financial turmoil.

When a company files for bankruptcy, analysts and critics alike immediately start asking questions as to how the situation evolved. Common questions include why ...

Solution Summary

The expert explains why the stigma attached to a corporation filling bankruptcy is different than that of an individual filing bankruptcy.

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