Money and banking / B1

BANGKR-upts-ee/ˈbæŋkrʌptsi/

Bankruptcy is the legal state of being unable to pay debts: file for bankruptcy; go into bankruptcy. Bankrupt is the adjective/person. Insolvency is a close legal twin. Broke is informal. Uncountable in this legal sense. Do not use bankruptcy for a failed exam — that is fail / be unsuccessful. UK news: bankruptcy petitions, company collapse.

Meaning

The legal state of being unable to pay your debts.

Examples

• “The shop went into bankruptcy after the rent increase.”
• “The shop went into bankruptcy after three bad quarters.”
• “Personal bankruptcy left him unable to be a company director for a period.”

Good to know

go into / file for bankruptcy. Adjective: bankrupt. Informal: broke. Legal twin: insolvency. Not a failed test.

Near in meaning

insolvency

Topics

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