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

Both Sweden's Northvolt, external and Norway's Morrow, external filed for bankruptcy and there are fears in Europe that the continent has missed another technology shift.

From BBC ● Sep. 10, 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

If the motion is not granted, Dylan would have to pursue her claims against Scott in bankruptcy court.

From Los Angeles Times ● Sep. 9, 2026

The creditor committee alleges Dish’s parent company transferred billions of dollars in assets out of reach before filing for bankruptcy in June.

From The Wall Street Journal ● Sep. 8, 2026

Employers will look at that $30,000 figure, which is over twice what they currently pay entry-level workers, and see nothing but bankruptcy ahead.

From "Nickel and Dimed: On (Not) Getting By in America" by Barbara Ehrenreich

This economic downturn pushed up the number of bankruptcies dramatically.

From Salon ● Aug. 29, 2026

Weil, Gotshal & Manges, a Wall Street law firm known for shepherding companies through bankruptcies and advising top private-equity firms, is facing a wave of partner defections.

From The Wall Street Journal ● Aug. 20, 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

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