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

This is the first time since 2009 – when GM and Chrysler went through bankruptcy and bailouts and Ford was also nearly out of cash – that the Canadian and US auto unions have negotiated at the same time in a previously unscheduled round of bargaining. —Chris Isidore, CNN, 17 Sep. 2023

Somehow, that resulted in an emergency bankruptcy, wherein Clementine’s voice actor was emergency-evacuated into a parking lot mid-recording-session for the final season of Telltale’s The Walking Dead. —WIRED, 16 Sep. 2023

The gambit and its fallout provoked awe, speculation, bankruptcies and even congressional hearings. —Robert Abele, Los Angeles Times, 15 Sep. 2023

Jones’s personal net worth is around $14 million, according to financial documents filed by Jones and his bankruptcy lawyers. —Timothy Bella, Washington Post, 15 Sep. 2023

The bankruptcy resulted in Genesis owing over $3 billion to unsecured creditors, including Gemini Earn customers who had around $1.1 billion in total funds on the platform. —Jeff John Roberts, Fortune Crypto, 14 Sep. 2023

When the bubble finally burst, in 1991, unemployment and bankruptcies rose. —M.h. Miller, New York Times, 12 Sep. 2023

While the passengers were waiting for Crystal’s comeback, Levis says, so too were the crew who had worked onboard before the previous parent company’s bankruptcy. —Scott Laird, Condé Nast Traveler, 8 Sep. 2023

Landlords, already pressured by a slumping office real estate market, may prefer concessions for a large tenant like WeWork than the uncertain outcome of a bankruptcy. —Alan Murray, Fortune, 7 Sep. 2023

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Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Phrases Containing bankruptcy

• file for bankruptcy
• in bankruptcy
• declare bankruptcy

• file for bankruptcy
• in bankruptcy
• declare 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.