Which of the following is the best definition of indirect bankruptcy costs?

Question $12$ options:

A legal proceeding for liquidating or reorganizing a business. Also, the transfer of some or all of a firm's assets to its creditors.

The direct and indirect costs associated with going bankrupt or experiencing financial distress.

The equity risk that comes from the financial policy $($i$.$e$.,$ capital structure$)$ of the firm.

The use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed.

The difficulties of running a business that is experiencing financial distress.