bankruptcy
noun
Examples of bankruptcy in a Sentence
Forbes Books Press Release Official, Forbes.com, 26 May 2026
There's a longer-term issue with bankruptcy, meanwhile, which remains on your credit report for seven to 10 years and, in turn, impacts your ability to qualify for future loans, housing or even certain jobs.
—Angelica Leicht, CBS News, 26 May 2026
There is also another report courtesy of Bloomberg claiming that LIV is laying the groundwork to potentially file for bankruptcy in the United States.
—Mark Harris Outkick, FOXNews.com, 25 May 2026
The two met through the Silicon Valley web at the turn of the century, and soon Gracias—at 55, just one year older than Musk—lent Musk $1 million in his early days at Tesla, when the company was teetering on the edge of bankruptcy.
—Eva Roytburg, Fortune, 25 May 2026
See All Example Sentences for bankruptcy
Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 29 May. 2026.
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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.
