# bankruptcy

/ˈbæŋkɹəpsi/ (US) · /bˈæŋkɹʌptsi/ (UK)

Source: https://englishreference.com/word/bankruptcy
Updated: 2026-06-19

## Senses

### 1. financial insolvency

noun · CEFR B2 · Technical

the legal state of a person or company that cannot pay the money they owe.

For teachers: the legally declared state of being unable to meet financial obligations or pay debts. Often used with the verbs 'file for' or 'declare'.

- The small airline was forced to file for bankruptcy after fuel prices doubled.
- After months of restructuring negotiations failed, the corporation finally declared bankruptcy to protect its remaining assets from creditors.

Usage: Commonly follows the verbs 'file for', 'declare', or 'avoid'.

### 2. lack of a quality

noun · CEFR C1 · Formal

a complete lack of something good or useful, such as ideas or morals.

For teachers: a total lack or exhaustion of a particular non-material resource or quality. Often used in the phrase 'moral bankruptcy'.

- The critic argued that the new film showed a total bankruptcy of original ideas.
- The scandal revealed a profound moral bankruptcy at the heart of the administration, leading to widespread calls for resignation.

Usage: Usually followed by 'of' and an abstract noun like 'ideas', 'imagination', or 'morals'.

## Examples

- The company filed for bankruptcy after a year of heavy losses.
- Filing for bankruptcy allowed the small business to freeze its debts while it worked on a new repayment plan.
- While some view bankruptcy as a total financial failure, it often serves as a necessary legal mechanism to provide debtors with a fresh start while ensuring equitable distribution among creditors.

---

From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.