bankruptcy
bankruptcy Lexical Profile
bankruptcy Game Scores & Validity
• noun
The legal state or judicial proceeding in which a person or organization unable to repay their debts has their assets evaluated and applied toward their liabilities.
"After years of declining sales and mounting debt, the retail chain finally filed for bankruptcy."
A complete lack or exhaustion of a valuable quality, such as morality, intellect, or creativity.
"The scandal exposed the moral bankruptcy of the administration's leadership."
Word Nuance & Usage
While often used interchangeably in casual speech, 'insolvency' is the financial condition of being unable to pay debts, whereas 'bankruptcy' is the formal legal status and court-supervised process resulting from it.
Word Origin & Etymology
Coined in the late 16th century from 'bankrupt' and the suffix '-cy', ultimately deriving from the Italian phrase 'banca rotta', meaning 'broken bench', referring to the medieval custom of breaking a moneychanger's counter when they failed to pay their debts.