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.

---

bankruptcy British  

/ ˈbæŋkrʌptsɪ, -rəptsɪ /

noun

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

---

bankruptcy Cultural  

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

---

Discover More

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

After 15 years of heady growth, accounting fraud resulted in what was then the largest-ever U.S. bankruptcy.

From The Wall Street Journal ● Sep. 11, 2026

It comes as LIV Golf filed for bankruptcy protection in the US on Tuesday, as it attempts to restructure for a "new era" next year.

From BBC ● Sep. 9, 2026

In a statement emailed to The Times on Monday, Wright described Scott’s bankruptcy filing as a “pathetic and cowardly” attempt to “deprive his victim of her day in court.”

From Los Angeles Times ● Sep. 9, 2026

Yes, because they have withstood the loss of huge names to a breakaway tour that has been financed to the tune of $5bn and that tour has now filed for bankruptcy protection.

From BBC ● Sep. 9, 2026

In the 1890s, the price of cane sugar was declining, and the planters who owned sugar fields in British Guiana were on the edge of bankruptcy.

From "Sugar Changed the World: A Story of Magic, Spice, Slavery, Freedom, and Science" by Marc Aronson

The 2005 changes caused the number of personal bankruptcies to plunge.

From Salon ● Aug. 29, 2026

The state is reluctant to fill the void left by federal funding after a series of bankruptcies and cancellations left only one truck maker and one bus maker selling hydrogen vehicles in North America.

From Los Angeles Times ● Aug. 17, 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

Two high-profile bankruptcies sparked fears in the market.

From The Wall Street Journal ● Jun. 20, 2026

The number of bankruptcies hied with the federal court in Midland went up by 65 percent.

From "Friday Night Lights: A Town, A Team, And A Dream" by H.G. Bissinger

Related Words

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