Definition

A legal status where a person or organization cannot pay their debts and seeks relief from some or all of their financial obligations.

Example

After struggling with debt for years, the company finally declared bankruptcy.

Conversation

Did you hear about Tom's business going into bankruptcy?

Yeah, I read about that; it’s really unfortunate.

I can’t believe it, he was doing so well before.

I know, it just shows how quickly things can change.

Synonyms & Antonyms

Root Explanation

Bankruptcy is formed from "banca" (meaning bench or counter, referring to a moneylender's table) and "ruptura" (from Latin, meaning break). The term originally described the breaking of a moneylender's bench, symbolizing financial failure or insolvency.

Memory Tip

Think of a moneylender's 'bench' ('banca') that has 'broken' ('ruptura') — that's why bankruptcy means financial failure.

Visually Confused Words