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

If the restructuring went ahead, it would be the largest in the history of the automotive industry, eclipsing the 50,000 job cuts General Motors made after it declared bankruptcy in 2009.

From Barron's ● Jul. 24, 2026

They suffer unexpected and debilitating health events, often through no fault of their own, and end up under a mountain of medical bills — health-related issues are still the No. 1 cause of bankruptcy.

From MarketWatch ● Jul. 23, 2026

Beverly Hills-based Fat Brands Inc. said in a statement that it filed for bankruptcy on Monday to restructure the debt it accumulated while expanding its company portfolio, citing ‘difficult and largely unforeseen’ market conditions.

From Los Angeles Times ● Jul. 22, 2026

One of IEP’s other auto businesses, Auto Plus, filed for bankruptcy in 2023.

From The Wall Street Journal ● Jul. 20, 2026

All of them, without exception, either ran their public corporations into bankruptcy or were saved from bankruptcy by the United States government.

From "The Big Short" by Michael Lewis

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

Recent private credit fund bankruptcies revealed poor collateral management, fraud, and inconsistent bank disclosures, raising risk concerns.

From Barron's ● Jun. 4, 2026

In his book, “Plunder: Private Equity’s Plan to Pillage America,” Ballou examined large leveraged buyouts and found that many of which resulted in bankruptcies.

From Los Angeles Times ● May 8, 2026

Disclose your credit score, credit-card balances, student loans and any major past financial events, like bankruptcies.

From MarketWatch ● May 5, 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