bankruptcy

noun

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

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.
The bankruptcy filing has led to delays in the civil cases. 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

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

Browse Nearby Words

Cite this Entry

“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 12 Jun. 2025.

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

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!