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Bankrupt Meaning: Definition, Examples, and Translations

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bankrupt

[หˆbaล‹krสŒpt ]

Definitions

Context #1 | Adjective

financial

Having been legally declared unable to pay debts.

Synonyms

broke, insolvent, ruined.

Which Synonym Should You Choose?

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Word Description / Examples
bankrupt

Used in a legal and financial context when a person or organization is officially declared unable to pay their debts.

  • After years of struggling, the company finally went bankrupt.
  • He filed for bankruptcy to get a fresh financial start.
insolvent

Used in a formal financial context to indicate that a person or business cannot meet their debt obligations. Often used in official documents and reports.

  • The company became insolvent due to poor financial management.
  • An insolvent estate may require special handling during probate.
broke

Used in informal situations to describe someone who has no money left, often temporarily.

  • I can't go out tonight; I'm broke until payday.
  • After paying all the bills, I'm completely broke.
ruined

Used in a more dramatic or emotional sense to describe someone or something that has suffered complete financial or reputational destruction.

  • After the scandal, his career was ruined.
  • The economic crisis ruined many small businesses.

Examples of usage

  • Due to the economic crisis, many companies went bankrupt.
  • After losing his job, he was on the verge of becoming bankrupt.
  • The business was declared bankrupt by the court.
  • The family faced bankruptcy after the unexpected medical expenses.
  • The company filed for bankruptcy protection.
Context #2 | Noun

legal

A person who has been officially declared bankrupt.

Synonyms

debtor, defaulted, insolvent.

Which Synonym Should You Choose?

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Word Description / Examples
bankrupt

Used when an individual or organization legally declares inability to pay debts. It can be applied in both casual and formal conversations.

  • The company went bankrupt after failing to secure a loan.
  • He declared himself bankrupt to avoid the mounting debt.
insolvent

Describes a situation where an individual or organization cannot meet debt obligations as they come due. Primarily used in formal or financial discussions.

  • The business was declared insolvent after it couldn't cover its debts.
  • She sought legal advice when she realized her company was insolvent.
debtor

Refers to a person or entity that owes money. Commonly used in discussions about finance, loans, and legal matters.

  • As a debtor, you are legally required to pay off your loans.
  • The debtor negotiated a new repayment plan with the bank.
defaulted

Used when someone fails to fulfill an obligation, especially failing to repay a loan. Often heard in financial or legal contexts and has a negative connotation.

  • The company defaulted on its loan, leading to legal action.
  • He defaulted on his mortgage payments, risking foreclosure.

Examples of usage

  • The bankrupt had to sell his assets to repay the creditors.
  • The court appointed a trustee to handle the affairs of the bankrupt.
  • Many bankrupts struggle to rebuild their financial stability.
  • The bankrupt was discharged from his debts after five years.
  • The company directors were held responsible for the bankruptcy.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Historical Context

  • The first bankruptcy laws in ancient Rome allowed creditors to seize a debtor's property to satisfy debts.
  • In medieval England, bankruptcy was seen as a crime, and debtors could be imprisoned as punishment.

Legal Aspects

  • In many countries, bankrupt individuals can file for bankruptcy protection, which helps them reorganize their finances.
  • Business bankruptcy can lead to liquidation, where a companyโ€™s assets are sold to pay off debt.

Pop Culture

  • Reality TV shows like 'The Apprentice' feature contestants trying to avoid financial ruin and bankruptcy.
  • Several famous people, including actors and musicians, have declared bankruptcy at some point in their careers, showing that it can happen to anyone.

Economics

  • A significant number of bankruptcies occur during economic recessions when people and businesses struggle to make money.
  • Bankruptcy can sometimes provide a fresh start, allowing individuals or companies to rebuild their finances.

Origin of 'bankrupt'

Main points about word origin

  • The word comes from the Italian 'banca rotta', meaning 'broken bank', which was used when a bank couldn't pay its debts.
  • In the past, if a person went bankrupt, their table (or bank) would be literally broken to show their financial failure.

The word 'bankrupt' originated from the Italian word 'banca rotta', which means 'broken bench'. This term was used in reference to the Medieval Italian practice of breaking a moneylender's bench when he could not pay his debts. Over time, the term evolved to signify financial insolvency or the inability to pay debts. The concept of bankruptcy has been present throughout history, with laws and procedures developed to address the financial challenges faced by individuals and businesses.

See also: banker, banknotes.

Word Frequency Rank

At #6,938 in frequency, this word belongs to advanced vocabulary. It's less common than core vocabulary but important for sophisticated expression.