Meaning & Definition of Bankruptcy in English

1. A state of complete lack of some abstract property

• "Spiritual bankruptcy"

• "Moral bankruptcy"

• "Intellectual bankruptcy"

2. Inability to discharge all your debts as they come due

• "The company had to declare bankruptcy"

• "Fraudulent loans led to the failure of many banks"

3. A legal process intended to insure equality among the creditors of a corporation declared to be insolvent