bankruptcy

American  

[bangk-ruhpt-see, -ruhp-see] / ˈbæŋk rʌpt si, -rəp si /

noun

• bankruptcies
  plural

1. the state of being or becoming bankrupt.

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

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bankruptcy British  

/ ˈbæŋkrʌptsɪ, -rəptsɪ /

noun

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

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bankruptcy Cultural  

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

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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

Derived Forms

• prebankruptcy
  noun

Inflected Forms

Nouns

• bankruptcies
  plural

Etymology

Origin of bankruptcy

First recorded in 1690–1700; bankrupt + -cy

Compare meaning

How does bankruptcy compare to similar and commonly confused words? Explore the most common comparisons:

• insolvency vs. bankruptcy

Explanation

Bankruptcy is a state of being bankrupt, or having no money to pay back debts that you owe. When you file for bankruptcy, you are giving up all your possessions and declaring, essentially, that you don't have any money left. During the recession, lots of businesses had to file for bankruptcy or declare by law that they were unable to pay off their debts. The ending of the word bankruptcy is a tricky one. Remember that it ends in tcy.

Example Sentences

See Examples For:

bankruptcy bankruptcies

A $21-billion state wildfire fund that Newsom and lawmakers created in 2019 to protect the state’s three big utilities from bankruptcy after a fire is reimbursing Edison for its payments to victims.

From Los Angeles Times ● Aug. 27, 2026

Five of the company’s top executives concealed the inordinately large and risky trades from its board, according to a lawsuit filed last week by investors, suppliers and others with claims outstanding after Enviva’s 2024 bankruptcy.

From The Wall Street Journal ● Aug. 27, 2026

In 2011, with the Dodgers headed toward bankruptcy, former owner Frank McCourt found what he believed would be his financial lifeline in a television rights deal with Fox Sports.

From Los Angeles Times ● Aug. 25, 2026

Jones has fought the judgments for years through appeals and bankruptcy proceedings while continuing to operate Infowars.

From Salon ● Aug. 22, 2026

On April 2, the nation’s largest subprime mortgage lender, New Century, was swamped by defaults and filed for bankruptcy.

From "The Big Short" by Michael Lewis

Founded in 1931 as a Jewish law firm outside the white-shoe elite, Weil built its reputation handling bankruptcies for Lehman Brothers, General Motors and Enron.

From The Wall Street Journal ● Aug. 20, 2026

"It will not be possible to redirect the entire harvest to European and other markets," Aramyan told AFP, warning of overproduction, bankruptcies and possible social strain.

From Barron's ● Jul. 14, 2026

The domestic auto industry consolidation could progress slowly due to price control and local governments’ usual preference to prevent large-scale bankruptcies, they say.

From The Wall Street Journal ● Jul. 9, 2026

The Wall Street Journal conducted an analysis last year and found that families have lost at least $190 million in 16 bankruptcies at continuing-care retirement communities, wiping out the savings of more than 1,000 families.

From MarketWatch ● Jun. 5, 2026

The various bonds you make from those loans will go bad not as the loans go bad but months later, after a lot of tedious foreclosures and bankruptcies and forced sales.

From "The Big Short" by Michael Lewis

Related Words

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