: to be unable to pay one’s debts The company went bankrupt.

What is the meaning of bankrupts in English?

/ˈbæŋkrʌpt/ us. unable to pay what you owe, and having control of your financial matters given, by a court of law, to a person who sells your property to pay your debts: be/go bankrupt He went bankrupt after only a year in business.

What happens when someone declared bankrupt?

Debts which are not paid to creditors in full are forgiven for the owners. A person or an organisation files for Chapter 7 under the US bankruptcy law in which they liquidate their assets to repay their debt obligations. Filing Chapter 7 means that all collection efforts from all creditors should be stopped at once.

What is the meaning of ruptcy?

2. Rupt ultimately comes from the Latin for “break.” – Casey Sep 24 ’14 at 21:45. 1. According to the dictionary on my computer, “bankruptcy” is the only word ending in “ruptcy.” – Snowball Sep 25 ’14 at 2:43. 1.

How do you use the word bankrupt?

His company went bankrupt because they couldn’t keep up with the changing market. She lost $5,000 in tuition when the private language school she was attending went bankrupt. The company’s bankruptcy was due to its inability to properly market its products.

What does going bank mean?

Bankruptcy is a legal status that usually lasts for a year and can be a way to clear debts you can’t pay. When you’re bankrupt, your non-essential assets (property and what you own) and excess income are used to pay off your creditors (people you owe money to). At the end of the bankruptcy, most debts are cancelled.

What is the legal definition of a bankruptcy?

Legal Definition of bankruptcy. 1 : the quality or state of a bankrupt filed for bankruptcy. 2 : the administration of an insolvent debtor’s property by the court for the benefit of the debtor’s creditors the debt was discharged in bankruptcy bankruptcy proceedings — see also adequate protection, Bankruptcy Code — compare insolvency, receivership.

What do you need to know about bankruptcy?

Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding.

What does it mean when a business goes bankrupt?

unable to pay what you owe, and having had control of your financial matters given, by a law court, to a person who sells your property to pay your debts: He went bankrupt after only a year in business. The recession has led to many small businesses going bankrupt.

Which is the first known use of bankruptcy?

The first known use of bankruptcy was circa 1634. Financial Definition of bankruptcy. Bankruptcy is a legal process under which a borrower protects and/or liquidates assets in order to repay debts. In general, there are three “types” of bankruptcy, each named after a section of U.S. bankruptcy law.