debt
bankruptcy
A legal process where a person or business that cannot repay their debts seeks relief from some or all of their obligations.
Example
"After years of losses, the company filed for bankruptcy and was restructured under court supervision."
💡 Memory Tip
BANK-ruptcy — the bank is rupt (broken). Your financial bank is broken.
Etymology
From Italian 'banca rotta' meaning 'broken bench' — moneylenders' benches were broken when they failed.
Common Misspellings
bankrupcybankrupcybankruptsybankrupcybanckruptcy
Related Terms
See Also
insolvencyliquidationChapter 7Chapter 11