Bankrupted Meaning: Definition, Examples, and Translations
๐ธ
bankrupted
[หbรฆลkrสptษชd ]
Definition
financial situation
To be bankrupted means to be declared unable to pay oneโs debts. This can occur after a court judgment or through other legal declarations. It often results in the liquidation of assets to pay creditors.
Synonyms
financially broken, insolvent, ruined.
Examples of usage
- The company was bankrupted after years of poor sales.
- He was bankrupted following the economic crisis.
- Her medical expenses bankrupted the family.
- Many businesses were bankrupted due to the pandemic.
Translations
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Interesting Facts
Legal Framework
- In many countries, bankruptcy is a legal process that helps people or businesses eliminate or repay their debts.
- Different types of bankruptcy exist, such as Chapter 7 and Chapter 13 in the U.S., catering to varying financial situations.
Cultural Impact
- Bankruptcy can carry a social stigma, often seen as a failure, despite being a legal remedy for financial distress.
- Pop culture often depicts bankruptcy in films or shows, where characters face dramatic overhauls of their financial situations.
Psychological Aspects
- Experiencing bankruptcy can lead to feelings of shame and anxiety, affecting mental health long after the financial issue is resolved.
- Research suggests that the fear of bankruptcy can influence spending behaviors and financial planning.
Historical Events
- The Great Depression saw a significant rise in bankruptcies, highlighting the economic vulnerabilities of individuals and businesses.
- Certain major corporations in history, such as Lehman Brothers in 2008, have famously filed for bankruptcy, marking major financial crises.
Origin of 'bankrupted'
Main points about word origin
- The term comes from Italian 'banca rotta', which literally means 'broken bank'.
- The word 'bankrupted' first appeared in English legal texts around the late 16th century.
The verb 'to bankrupt' originates from the Italian phrase 'banca rotta,' which means 'broken bench.' In medieval Italy, moneychangers would conduct their business on benches in marketplaces; if they defaulted on loans, their benches would be broken as a sign of their financial failure. This term was adopted into Middle English during the 16th century. The legal concept of bankruptcy evolved over centuries, becoming formalized in laws that allow individuals or companies to restructure their debts or liquidate assets. In modern context, bankruptcy is a legal status that enables a person or business to seek relief from debts they cannot pay. The term has expanded to encompass not just the act of declaring bankruptcy but also the broader consequences that follow, such as loss of reputation and financial recovery efforts.