bankruptcy

noun

bank·rupt·cy ˈbaŋk-(ˌ)rəp(t)-sē

plural bankruptcies

: the quality or state of being bankrupt

: utter failure or impoverishment

Example Sentences

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 Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection.

Damian J. Troise And Alex Veiga, USA TODAY, 29 Nov. 2022 Five years later, the crypto space is in disarray after FTX, one of the largest crypto exchanges, filed for Chapter 11 bankruptcy protection earlier this month.

Byluisa Beltran, Fortune, 28 Nov. 2022 Losses on a loan to Three Arrows and contagion from Celsius forced Voyager into bankruptcy protection.

Greg Ip, WSJ, 23 Nov. 2022 Jones’s company Free Speech Systems, which operates Infowars, filed for bankruptcy protection in July.

Hanna Ziady, CNN, 23 Nov. 2022 In January 2004, the 26-year-old filed for bankruptcy protection.

Emily Steel, New York Times, 20 Nov. 2022 The suit seeks unspecified damages and is the first filed against Bankman-Fried and his companies since FTX filed for bankruptcy protection.

Kate Gibson, CBS News, 18 Nov. 2022 On Friday, the firm filed for bankruptcy protection, and Bankman-Fried resigned as chief executive.

Aaron Pressman, BostonGlobe.com, 15 Nov. 2022 The cryptocurrency lender BlockFi paused client withdrawals Friday after FTX sought bankruptcy protection.

Ken Sweet, ajc, 14 Nov. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bankruptcy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Time Traveler

The first known use of bankruptcy was circa 1634

See more words from the same year

Cite this Entry

Style

“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 7 Dec. 2022.

Copy Citation

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

: the quality or state of a bankrupt

filed for bankruptcy

: 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.