Bankruptcy Meaning: Definition, Examples, and Translations
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bankruptcy
[ˈbæŋkrəptsi ]
Definitions
legal process
Bankruptcy is a legal process through which individuals or businesses that cannot repay their debts to creditors may seek relief from some or all of their debts. It is often initiated by the debtor.
Synonyms
default, insolvency, liquidation.
Which Synonym Should You Choose?
Word | Description / Examples |
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bankruptcy |
Used when an individual or company cannot repay their debts and seeks legal relief. It often involves a formal legal process in court.
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insolvency |
Used when someone or a company cannot pay their debts as they come due. It indicates a financial state rather than a formal process.
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liquidation |
Used when a company's assets are sold off to pay its debts, usually as a last step when closing the company completely. It often involves a formal legal process.
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default |
Typically refers to failing to meet the legal obligations of a loan, such as missing a payment or not adhering to the terms. It is mainly used in a financial and legal context.
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Examples of usage
- After years of financial struggle, the company had no choice but to file for bankruptcy.
- Personal bankruptcy can have long-lasting effects on an individual's credit score.
financial status
Bankruptcy refers to the state of being completely lacking in a particular quality or value. It can also mean the state of having been declared bankrupt.
Synonyms
bankrupt state, insolvency, ruin.
Which Synonym Should You Choose?
Word | Description / Examples |
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bankruptcy |
This term is often used in legal and financial contexts to describe the formal process by which a person or business declares they are unable to repay their debts.
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bankrupt state |
This expression describes the condition of being unable to meet financial obligations without necessarily referring to the formal legal process. It can be used more informally.
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insolvency |
Often used in a technical or formal financial context, this term describes a situation where an individual or company cannot pay their debts as they come due, but doesn't always imply formal legal proceedings.
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ruin |
This word has a broader, often dramatic and negative connotation, and can describe financial collapse as well as any severe damage in other aspects.
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Examples of usage
- The bankruptcy of the company led to widespread job losses.
- His bankruptcy of ideas left him unable to come up with a solution.
Translations
To see the translation, please select a language from the options available.
Origin of 'bankruptcy'
The word 'bankruptcy' originates from the Italian word 'banca rotta', meaning 'broken bench'. In ancient times, Italian moneylenders conducted their business sitting at benches. When a moneylender could no longer pay his debts, his bench was physically broken as a symbol of his insolvency. The concept of bankruptcy has evolved over centuries to become the legal process we know today.
See also: bankrupting.