Question

The act of turning over a company to an independent overseer while going through hard financial times is called .

Answer 1

this is the act of bankruptcy. usually it is a procedure that helps consumers and businesses get rid of their debts and repay their creditors.

Answer 2

Answer: BANKRUPTCY

As David Haynes of The Balance explains, "Bankruptcy is a federal law that allows individuals and businesses alike an opportunity to eliminate or reorganize burdensome debt." Provisions for bankruptcy law in the United States actually go back before the founding of the country. Early bankruptcy laws in the US were modeled after similar laws in England.

In more recent US history, there have been some famous bankruptcies in which companies sought to make a comeback from dire financial straits. General Motors filed for bankruptcy in 2009, and ultimately was bailed out by the US government (with supervision and conditions). Marvel Entertainment, which now is having blockbuster success with huge movie franchises, filed for bankruptcy protection in 1996 (when it was solely a comic book producer).