Meaning & use

bankruptcy

noun·Academic

A legal process in which a person or business unable to repay debts has their finances managed or discharged by a court.

See it in a sentence

The company filed for bankruptcy after years of declining sales and rising debt.

Bankruptcy allowed him to restructure his debts and eventually rebuild his credit.

A note on using this word

Bankruptcy is a formal legal status, distinct from simply being in debt, and involves specific court procedures.

Words with a similar meaning

insolvency

Choose a synonym to suit the sentence. Meanings can overlap without being identical.

Make it your own

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