bankruptcy
noun
Examples of bankruptcy in a Sentence
Julia Marnin, Sacbee.com, 6 June 2025
Lopez insisted that had to be done through the federal bankruptcy court and a trustee.
—Tovia Smith, NPR, 6 June 2025
The studios won $62.4 million in damages, eventually reduced to a $9.9 million settlement after VidAngel filed for Chapter 11 bankruptcy.
—Scott Roxborough, HollywoodReporter, 6 June 2025
Through the years, Mason battled addiction and endured bankruptcy, but told USA TODAY last year that he’s tried to stay active and healthy.
—Melissa Ruggieri, USA Today, 4 June 2025
See All Example Sentences for bankruptcy
Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 12 Jun. 2025.
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bankruptcy
noun
Legal Definition
bankruptcy
noun
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.
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