B1nounformal3K

Bankruptcy

UK /["/ˈbæŋkrʌptsi/"]/US /["/ˈbæŋkrʌptsi/"]/

Definition

the state of being bankrupt

In simple words: When someone cannot pay their debts and asks the court for help.

Examples

  • The company **filed for bankruptcy** *(= asked to be officially ) in 2022.
  • **moral/political bankruptcy**
  • There could be further bankruptcies among small farmers.
  • Small travel operators are facing bankruptcy.
  • The company has been forced to file for bankruptcy.
  • The defendant has a bankruptcy order against him.

Usage notes

Used primarily in legal and financial contexts. Avoid using in casual conversations. Be careful not to confuse with personal failure; it refers to legal status.

Grammar pattern

declare + bankruptcy

Memory hint

Think of a 'bank' going 'broke' — bankruptcy means the bank can't pay its bills.

Collocations

  • consumer
  • personal
  • corporate
  • face
  • avoid
  • cause
  • filing
  • order
  • proceedings
  • the threat of bankruptcy

Synonyms

  • insolvency

Antonyms

  • solvency
  • wealth
  • prosperity

Common mistakes

  • Confused with 'bankrupt' as an adjective.
  • Using 'bankruptcy' in informal situations where it sounds inappropriate.
  • Misusing the term in non-financial contexts.