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.
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.