bankruptcy

noun

bank·​rupt·​cy ˈbaŋk-(ˌ)rəp(t)-sē How to pronounce bankruptcy (audio)
plural bankruptcies
Synonyms of bankruptcynext
1
: the quality or state of being bankrupt
2
: utter failure or impoverishment

Synonyms of bankruptcy

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Examples of bankruptcy in a Sentence

The company is facing bankruptcy. The company was forced into bankruptcy. The number of bankruptcies was especially high last year. Critics view the decision as an example of moral bankruptcy on the part of the administration.
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Financial services firm Lehman Brothers filed for Chapter 11 bankruptcy protection, the largest bankruptcy ever, with assets worth $639 billion. — USA Today, 1 Sep. 2026 The exit term loan is paid-in-kind and therefore there are no cash payments due for the first two years post-emergence from the bankruptcy. — David Moin, Footwear News, 1 Sep. 2026 Platforms must segregate customer assets from their own, under qualified custody, so that a bankruptcy does not become a claim against a customer’s savings. — Michael Faulkender, Baltimore Sun, 31 Aug. 2026 While each bureau uses its own scoring model, business credit scores typically consider factors like payment history, credit utilization, industry risk and public records, such as liens, judgments and bankruptcies. — Carson Brunson, CNBC, 31 Aug. 2026 See All Example Sentences for bankruptcy

Word History

First Known Use

circa 1634, in the meaning defined at sense 1

Time Traveler
The first known use of bankruptcy was circa 1634

Phrases Containing bankruptcy

Browse Nearby Words

bankrupt
bankruptcy
bankrupt worm
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Cite this Entry

“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 3 Sep. 2026.

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Kids Definition

bankruptcy

noun
bank·​rupt·​cy ˈbaŋ-(ˌ)krəp-(t)sē How to pronounce bankruptcy (audio)
plural bankruptcies
: the condition of being bankrupt

Legal Definition

bankruptcy

noun
bank·​rupt·​cy ˈbaŋ-ˌkrəp-sē How to pronounce bankruptcy (audio)
plural bankruptcies
1
: the quality or state of a bankrupt
filed for bankruptcy
2
: the administration of an insolvent debtor's property by the court for the benefit of the debtor's creditors
the debt was discharged in bankruptcy
bankruptcy proceedings
see also adequate protection, Bankruptcy Code compare insolvency, receivership

Note: Bankruptcy protects the debtor from debt collection by creditors. A debtor may file for bankruptcy, which is called “voluntary bankruptcy,” or a creditor may petition the court to declare the debtor bankrupt, which is called “involuntary bankruptcy.” Involuntary bankruptcy is allowed only under chapter 7 or chapter 11 of the U.S. Bankruptcy Code. There are four types of relief available to individuals or corporations under the Bankruptcy Code: liquidation (chapter 7), reorganization (chapter 11), debt adjustment for a family farmer or fisherman (chapter 12), and debt adjustment for an individual with a regular income (chapter 13). Municipalities may file for bankruptcy under chapter 9. The court determines which debts are to be repaid according to their priority, and the debtor is typically granted a discharge from unpaid debts that are dischargeable under the Bankruptcy Code.

More from Merriam-Webster on bankruptcy

Britannica.com: Encyclopedia article about bankruptcy

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