bankruptcy

word

/ˈbæŋkɹəpsi/
/bˈæŋkɹʌptsi/

Definition

Bankruptcy is a legal situation where a person or business cannot pay the money they owe and seeks official protection from creditors.

Usage & Nuances

A formal, legal term used mostly in financial and legal contexts. Collocates with 'file for bankruptcy', 'declare bankruptcy', 'face bankruptcy'. Not interchangeable with 'insolvency' (technical difference in law); bankruptcy usually refers to the legal process, not just lacking money.

Example Sentences

The company declared bankruptcy last year.

basic

He went into bankruptcy after losing his job.

basic

Many small businesses fear bankruptcy during economic crises.

basic

After the restaurant went under, they had no choice but to file for bankruptcy.

natural

Sarah learned a lot about finances after going through bankruptcy herself.

natural

His risky investments eventually ended in bankruptcy.

natural