bankruptcy

[bangk-ruhpt-see, -ruhp-see]

noun

plural

bankruptcies 

1. the state of being or becoming bankrupt.

2. utter ruin, failure, depletion, or the like.

bankruptcy

/ ˈbæŋkrʌptsɪ, -rəptsɪ /

noun

1. the state, condition, or quality of being or becoming bankrupt

bankruptcy

1. Legally declared insolvency, or inability to pay creditors.

If an individual or a corporation declares bankruptcy, a court will appoint an official to make an inventory of the individual's or corporation's assets and to establish a schedule by which creditors can be partially repaid what is owed them.

An individual who is lacking a specific resource or quality is sometimes said to be bankrupt, as in intellectually bankrupt or morally bankrupt.

Other Word Forms

• prebankruptcy noun

Word History and Origins

Origin of bankruptcy¹

First recorded in 1690–1700; bankrupt + -cy

Example Sentences

A lawyer for James told the court at a bankruptcy hearing that the First Brands collapse was caused largely by macroeconomic factors and denied wrongdoing by management.

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Since taking the helm in 2014, she’s pulled AMD back from the verge of bankruptcy and built the company’s market value from less than $3 billion to an astounding $348 billion.

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Earlier this month, the Burbank-based nonprofit filed for Chapter 7 bankruptcy in Delaware court, saying it had $284,823 in liabilities, which include staff member salaries, insurance payments and credit card debt.

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The stress placed on some subprime borrowers was highlighted last month with the bankruptcy filing of lender Tricolor Holdings, home to some 100,000 outstanding loans.

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First Brands Group, the automotive supplier that collapsed into bankruptcy last month after the discovery of accounting irregularities, is facing a criminal investigation by the Justice Department, people familiar with the matter said.

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Related Words

• default 
• disaster 
• failure 
• insolvency 
• liquidation 
• loss