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bankruptcy
noun
Examples of bankruptcy in a Sentence
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'bankruptcy.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Word History
circa 1634, in the meaning defined at sense 1
Phrases Containing bankruptcy
Dictionary Entries Near bankruptcy
Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 5 Oct. 2024.
Kids Definition
bankruptcy
nounLegal Definition
bankruptcy
nounNote: Bankruptcy protects the debtor from debt collection by creditors. A debtor may file for bankruptcy, which is called “voluntary bankruptcy,” or a creditor may petition the court to declare the debtor bankrupt, which is called “involuntary bankruptcy.” Involuntary bankruptcy is allowed only under chapter 7 or chapter 11 of the U.S. Bankruptcy Code. There are four types of relief available to individuals or corporations under the Bankruptcy Code: liquidation (chapter 7), reorganization (chapter 11), debt adjustment for a family farmer or fisherman (chapter 12), and debt adjustment for an individual with a regular income (chapter 13). Municipalities may file for bankruptcy under chapter 9. The court determines which debts are to be repaid according to their priority, and the debtor is typically granted a discharge from unpaid debts that are dischargeable under the Bankruptcy Code.
More from Merriam-Webster on bankruptcy
Nglish: Translation of bankruptcy for Spanish Speakers
Britannica English: Translation of bankruptcy for Arabic Speakers
Britannica.com: Encyclopedia article about bankruptcy
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