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

Joann operates 829 stores across 49 states around the U.S. and its stores and website will remain open for business during the Chapter 11 bankruptcy process. —Mark Faithfull, Forbes, 15 Jan. 2025

That deal is expected to close in June, and those assets are not part of the bankruptcy filing. —Caitlin Owens, Axios, 15 Jan. 2025

Weeks prior, Cardi’s legal team had submitted a claim to a federal bankruptcy judge accusing Tasha of hiding money to avoid paying the rapper nearly $4 million in damages, which a federal jury awarded Cardi in 2022 after finding the blogger’s past claims about the star defamatory. —Hannah Dailey, Billboard, 14 Jan. 2025

The dine-in chain, which is now up to 44 theaters, is private so doesn’t report financials but since emerging from bankruptcy post-Covid it’s become among the hottest places to see films drawing young crowds to a mix of big studio release, arthouse and repertory fare. —Jill Goldsmith, Deadline, 14 Jan. 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.