bankruptcy
noun
Examples of bankruptcy in a Sentence
Becca Bratcher, Forbes.com, 14 July 2025
Dayton, a small community near Chattanooga, had lost a factory to bankruptcy and needed the boost.
—Paige Williams, New Yorker, 13 July 2025
The restaurant, based in Lakewood, Colorado, a suburb of Denver, first opened in 1974 and then reopened in 2024 after being bought out of bankruptcy by Parker and Stone, who had set a 2003 episode of South Park at Casa Bonita.
—Caitlin Huston, HollywoodReporter, 10 July 2025
The hosts talk about the company’s unique business history—Céspedes bought it out of bankruptcy after loaning the owners $700,000—and whether there’s an opportunity for the company to make metal bats to sell to youth players.
—Scott Soshnick, Sportico.com, 8 July 2025
See All Example Sentences for bankruptcy
Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 18 Jul. 2025.
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bankruptcy
noun
Legal Definition
bankruptcy
noun
Note: Bankruptcy protects the debtor from debt collection by creditors. A debtor may file for bankruptcy, which is called “voluntary bankruptcy,” or a creditor may petition the court to declare the debtor bankrupt, which is called “involuntary bankruptcy.” Involuntary bankruptcy is allowed only under chapter 7 or chapter 11 of the U.S. Bankruptcy Code. There are four types of relief available to individuals or corporations under the Bankruptcy Code: liquidation (chapter 7), reorganization (chapter 11), debt adjustment for a family farmer or fisherman (chapter 12), and debt adjustment for an individual with a regular income (chapter 13). Municipalities may file for bankruptcy under chapter 9. The court determines which debts are to be repaid according to their priority, and the debtor is typically granted a discharge from unpaid debts that are dischargeable under the Bankruptcy Code.
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