bankruptcy
BANG-kruhp-see
Bankruptcy (noun) means the legally recognized state of being unable to pay one's debts. Example: “The bakery faced bankruptcy when its biggest customer stopped paying the bills.”
noun
1
The legally recognized state of being unable to pay one's debts.
"The bakery faced bankruptcy when its biggest customer stopped paying the bills."
"The retailer filed for bankruptcy after months of declining sales."
"Personal bankruptcy can stay on your credit record for years."
How to use bankruptcy
Learner’s notesIn plain EnglishThe formal legal process or condition of being unable to pay debts.
Common pairings
file for bankruptcy
declare bankruptcy
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Word forms
- Plural
- bankruptcies
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The bakery faced _____ when its biggest customer stopped paying the bills.
Etymology
From bankrupt plus the noun suffix -cy.
Synonyms
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Frequently asked questions
What does “bankruptcy” mean?
The word “bankruptcy” means the legally recognized state of being unable to pay one's debts. In plain terms, the formal legal process or condition of being unable to pay debts.
How do you pronounce “bankruptcy”?
“Bankruptcy” is pronounced BANG-kruhp-see (/ˈbæŋkˌɹʌp(t).si/ in IPA).
How do you use “bankruptcy” in a sentence?
Here is “bankruptcy” used in a sentence: “The retailer filed for bankruptcy after months of declining sales.”
What part of speech is “bankruptcy”?
“Bankruptcy” is a noun.
Is “bankruptcy” a common word?
“Bankruptcy” is a fairly common word in modern English, usually learned at around the B2 level.
What is the difference between "bankruptcy" and "insolvency"?
Insolvency is the financial condition of being unable to pay debts as they fall due, while bankruptcy is the formal, legally recognized status that can follow. All bankruptcy involves insolvency, but not all insolvency leads to bankruptcy.
What is the difference between "bankruptcy" and "debt"?
Debt is simply money owed, which is normal and often manageable; bankruptcy is the legal recognition that a person or business cannot pay what it owes. Bankruptcy is one possible outcome of unmanageable debt, not the same thing as debt.
What is the verb or adjective form of "bankruptcy"?
The related word is "bankrupt," used as an adjective or verb: a person or company can "go bankrupt" or "be declared bankrupt." "Bankruptcy" is the noun that names that state.
Can "bankruptcy" be used figuratively?
Yes. Beyond finance, "bankruptcy" can describe a total lack of a quality, as in "moral bankruptcy" or "intellectual bankruptcy," meaning a complete absence of principles or ideas.
