Meaning & Definition of word "Bankruptcy"
to
Bankruptcy
/ˈbæŋkrʌptsi/
noun:
- 1. The state of being unable to pay debts owed, which can lead to legal proceedings to discharge those debts.
- Example: After losing her job, she unfortunately had to declare bankruptcy.
- 2. A legal status of a person or other entity that cannot repay the debts it owes to creditors.
- Example: The company went into bankruptcy after struggling with financial losses for years.
- 3. The condition of being bankrupt; insolvency.
- Example: His reckless spending eventually led to his financial bankruptcy.
Etymology
The word 'bankruptcy' derives from the Italian 'banca rotta,' meaning 'broken bench,' referring to the practice of breaking the bench of a banker who could not pay his debts.
Common Phrases and Expressions
file for bankruptcy:
To submit a formal petition to a court for relief from debts.
bankruptcy court:
A specialized court that handles bankruptcy cases.
bankruptcy protection:
A legal provision that helps individuals or businesses manage their debts.
Related Words
insolvency:
The condition where an individual or organization cannot meet their financial obligations.
creditor:
A person or institution to whom money is owed.
debtor:
A person or entity that owes a debt.
Slang Meanings of bankruptcy
Meaning: Going broke
Example Sentence: He’s been going broke since his business failed.
Meaning: Broke
Example Sentence: After the expenses piled up, she was completely broke.
Meaning: In the red
Example Sentence: After paying bills this month, I’m really in the red.