Bankruptcy can come from financial problems such as loss of capital and not being able to secure it when needed when dealing with high debt or issues with cash flow. A company files then the courts take over and force the sale of property and assign trustees to pay off creditors. The owner(s) may be surprised by other unseen outcomes later in filing bankruptcy that they may not have expected. Costs types that are considered in a bankruptcy depend on the size of the company. One would be variable costs, which is normal cost and they are the factors that impact the functions of business production and affects the overall output of goods and services in a company. When the company variable cost remains flat and can't recover it hurts its fixed cost and bottom line. In bankruptcy, the attorney's fees, which are based on the type of bankruptcy, the severity of the case, location, and legal attorney level of expertise are considered in variable cost. Fixed costs are concrete expenses, but some of them can depreciate over time with the advancement of technology and trending upgrades that can alter changes but not right away. In the event of bankruptcy, a company's fixed cost will not remain permanent if the income falls. If income is affected then these expenses cannot be paid and the company will be required to finance filing and administrative fees during the bankruptcy. The purpose is to figure out the probability and cost of debt owed to creditors/debt holders to secure their exposure and risk by preventing it from affecting interest rates in the market. Let's hear from you

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