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Bankruptcy - Meaning, Definition & English Examples

Bankruptcy is a legal process where an individual or business declares inability to repay debts, often leading to asset liquidation or a repayment plan under court supervision. It provides financial relief and a fresh start.

bankruptcy

/ˈbæŋkrʌptsi/ /ˈbæŋkrʌptsi/

Definition:

Legal status of being unable to repay debts owed to creditors.

Synonyms:

insolvency, liquidation, failure, default

Part of Speech:

noun

Antonyms:

solvency, prosperity

Common Collocations:

file for bankruptcy, declare bankruptcy, bankruptcy proceedings, bankruptcy protection

Derivatives:

bankrupt, bankrupted, bankrupting

Usage Tips:

Use "bankruptcy" to describe financial failure; it's a legal term often involving court proceedings.

Common Phrases:

go bankrupt, on the brink of bankruptcy, bankruptcy looms

Etymology:

From Italian "banca rotta," meaning "broken bench," referring to medieval bankers' broken benches after financial failure.

Examples:

  • 1. The company filed for bankruptcy last month due to massive debts.
  • 2. Many small businesses face bankruptcy during economic downturns.
  • 3. He avoided bankruptcy by negotiating with his creditors.
  • 4. Bankruptcy laws vary significantly between countries.

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