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

Big Lots has secured yet another partner in its comeback campaign, less than a year after filing for Chapter 11 bankruptcy and announcing plans to close hundreds of stores. —Mary Walrath-Holdridge, USA Today, 2 May 2025

Helios and Matheson bought a majority stake in the company in 2017, and the service lowered its price to $9.95 a month, which gradually drove the company to bankruptcy. —Caitlin Huston, HollywoodReporter, 1 May 2025

From a debtor's viewpoint, this opinion is also proof positive that LLC and partnership interests owned by the debtor when the bankruptcy case is commenced can be lost through the bankruptcy proceeding. —Jay Adkisson, Forbes.com, 30 Apr. 2025

Sokola also received a settlement through The Weinstein Company’s bankruptcy proceedings in connection to these allegations, according to the prosecutor. —Lauren Del Valle, CNN Money, 23 Apr. 2025

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.