bankruptcy
noun
Examples of bankruptcy in a Sentence
Daniel De Visé, USA Today, 21 Apr. 2025
If yes, please explain: No, I have not Have you been involved in a civil lawsuit or bankruptcy proceeding?
—Matthew Adams, Fort Worth Star-Telegram, 20 Apr. 2025
Summary Activist investor Bill Ackman's large Hertz stake spurred a 131% stock surge despite the company's recent bankruptcy, debt litigation, and net losses.
—Peter Cohan, Forbes.com, 20 Apr. 2025
But amidst all of that moral bankruptcy, at least one of the lot has emerged with their integrity intact.
—Mikey O'Connell, HollywoodReporter, 20 Apr. 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 27 Apr. 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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