Bankruptcy
/ˈbæŋkrʌptsi/
Definitions
The state of being legally declared unable to pay outstanding debts.
/ˈbæŋkrʌptsi/
State of being bankrupt
The small business declared bankruptcy after failing to secure a loan.
💡 Simply: When someone or a company can't pay their debts.
More Examples
His personal bankruptcy resulted in the loss of his assets.
How It's Used
"The company filed for bankruptcy after years of financial losses."
"The economic downturn led to a surge in bankruptcies."
From Old French 'banqueroute', literally 'bankrupt', from 'banc' (bench) + 'route' (broken). Referring to the medieval practice of breaking a merchant's bench in the marketplace upon declaring insolvency.
The term 'bankruptcy' originally referred to the physical breaking of a merchant's stall or table in a marketplace, symbolizing the end of their business.
Memory tip
Think 'bank' and 'rupt' (broken) - a broken bank.
Word Origin
"broken bench"