bankruptcy

noun

bank·​rupt·​cy ˈbaŋk-(ˌ)rəp(t)-sē How to pronounce bankruptcy (audio)
plural bankruptcies
1
: the quality or state of being bankrupt
2
: utter failure or impoverishment

Examples of bankruptcy in a Sentence

The company is facing bankruptcy. The company was forced into bankruptcy. The number of bankruptcies was especially high last year. Critics view the decision as an example of moral bankruptcy on the part of the administration.
Recent Examples on the Web
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The company also warned that bankruptcy is an option for the regional sports network if can’t refinance its $804 million in debt that originally came due last Oct. 11. Kurt Badenhausen, Sportico.com, 14 Mar. 2025 While the bankruptcy procedure freed him from his debt obligations, his credit score took a dip. Kamaron McNair, CNBC, 13 Mar. 2025 Red Lobster emerged from bankruptcy in September with new ownership and a new CEO focused on revitalizing the brand. Mike Kramer, USA TODAY, 13 Mar. 2025 The hospital system has since persuaded the bankruptcy court to order Bundy and his wife to show up and answer questions about their finances and assets. Audrey Dutton, ProPublica, 12 Mar. 2025 See All Example Sentences for bankruptcy

Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Time Traveler
The first known use of bankruptcy was circa 1634

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Cite this Entry

“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 24 Mar. 2025.

Kids Definition

bankruptcy

noun
bank·​rupt·​cy ˈbaŋ-(ˌ)krəp-(t)sē How to pronounce bankruptcy (audio)
plural bankruptcies
: the condition of being bankrupt

Legal Definition

bankruptcy

noun
bank·​rupt·​cy ˈbaŋ-ˌkrəp-sē How to pronounce bankruptcy (audio)
plural bankruptcies
1
: the quality or state of a bankrupt
filed for bankruptcy
2
: the administration of an insolvent debtor's property by the court for the benefit of the debtor's creditors
the debt was discharged in bankruptcy
bankruptcy proceedings
see also adequate protection, Bankruptcy Code compare insolvency, receivership

Note: Bankruptcy protects the debtor from debt collection by creditors. A debtor may file for bankruptcy, which is called “voluntary bankruptcy,” or a creditor may petition the court to declare the debtor bankrupt, which is called “involuntary bankruptcy.” Involuntary bankruptcy is allowed only under chapter 7 or chapter 11 of the U.S. Bankruptcy Code. There are four types of relief available to individuals or corporations under the Bankruptcy Code: liquidation (chapter 7), reorganization (chapter 11), debt adjustment for a family farmer or fisherman (chapter 12), and debt adjustment for an individual with a regular income (chapter 13). Municipalities may file for bankruptcy under chapter 9. The court determines which debts are to be repaid according to their priority, and the debtor is typically granted a discharge from unpaid debts that are dischargeable under the Bankruptcy Code.

More from Merriam-Webster on bankruptcy

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