bankruptcy

noun

bank·​rupt·​cy ˈbaŋk-(ˌ)rəp(t)-sē 

plural bankruptcies

1

: the quality or state of being bankrupt

2

: utter failure or impoverishment

Synonyms

• failure
• insolvency
• ruin

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

The company is emerging from bankruptcy, and its new naming rights partnership with FanDuel and content partnership with Amazon Prime could signal a death rattle from the old guard. —Matt Craig, Forbes, 21 Nov. 2024

Four additional Big Lots stores in Michigan are preparing to close as the discount retailer navigates Chapter 11 bankruptcy. Websites for Big Lots locations in Benton Harbor, Livonia, Saginaw and Taylor have a banner at the top announcing the location is closing. —Tanya Wildt, Detroit Free Press, 21 Nov. 2024

The mall opened in 1962 and over the years has undergone several changes in ownership, a bad fire, and a bankruptcy, The Courier Journal previously reported. —Maggie Menderski, The Courier-Journal, 21 Nov. 2024

Monthly filing data for personal bankruptcies in the U.S. from 2014 through October of 2024. —Kate Gibson, CBS News, 20 Nov. 2024

Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Phrases Containing bankruptcy

• declare bankruptcy
• file for bankruptcy
• in bankruptcy

Kids Definition

bankruptcy

noun

bank·​rupt·​cy ˈbaŋ-(ˌ)krəp-(t)sē 

plural bankruptcies

: the condition of being bankrupt

Legal Definition

bankruptcy

noun

bank·​rupt·​cy ˈbaŋ-ˌkrəp-sē 

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.