bankruptcy

noun

bank·​rupt·​cy ˈbaŋk-(ˌ)rəp(t)-sē 

plural bankruptcies

1

: the quality or state of being bankrupt

2

: utter failure or impoverishment

Synonyms

• failure
• insolvency
• ruin

Examples of bankruptcy in a Sentence

The company is facing bankruptcy.

The company was forced into bankruptcy.

The number of bankruptcies was especially high last year.

Critics view the decision as an example of moral bankruptcy on the part of the administration.

Recent Examples on the Web

Express plans to close 95 locations nationwide after the company filed for Chapter 11 bankruptcy protection earlier this week. —Angela Rodriguez, Sacramento Bee, 25 Apr. 2024

Express voluntarily filed for Chapter 11 bankruptcy in Delaware on Monday for the potential sale of a majority of the company's stores and operations, according to a news release. —The Courier-Journal, 24 Apr. 2024

The company laid off 95% of its staff, and by June of 2020 Cirque had sought bankruptcy protection. —Phil Wahba, Fortune, 24 Apr. 2024

Davis has worked for more than 20 years on receiverships, forensic accounting, restructuring, fraud detection, bankruptcy, valuations and damages, according to his firm's website. —Caitlin McGlade, The Arizona Republic, 23 Apr. 2024

Jobs lost, going out of business sale Earlier this month, 99 Cents Only Stores filed for Chapter 11 bankruptcy. —Roxana Popescu, San Diego Union-Tribune, 23 Apr. 2024

Also see: Pirch files layoff notice after abruptly closing stores and ghosting customers In a Chapter 7 bankruptcy, the most common type of bankruptcy, the debtor sells non-exempt assets and then uses the proceeds to pay its creditors. —Roxana Popescu, Orange County Register, 22 Apr. 2024

The company's bankruptcy follows the same step earlier this month by 99 Cents Only Stores and hobby chain Joann in March. —Kate Gibson, CBS News, 22 Apr. 2024

In the run-up to GM's 2009 bankruptcy, the U.S auto task force overseeing the restructuring considered having GM leave the RenCen. —Eric D. Lawrence, Detroit Free Press, 15 Apr. 2024

Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Phrases Containing bankruptcy

• declare bankruptcy
• file for bankruptcy
• in bankruptcy

Kids Definition

bankruptcy

noun

bank·​rupt·​cy ˈbaŋ-(ˌ)krəp-(t)sē 

plural bankruptcies

: the condition of being bankrupt

Legal Definition

bankruptcy

noun

bank·​rupt·​cy ˈbaŋ-ˌkrəp-sē 

plural bankruptcies

1

: the quality or state of a bankrupt

filed for bankruptcy

2

: the administration of an insolvent debtor's property by the court for the benefit of the debtor's creditors

the debt was discharged in bankruptcy

bankruptcy proceedings

see also adequate protection, Bankruptcy Code compare insolvency, receivership

Note: 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.