noun · formal

bankruptcy

/ˈbæŋ.krʌpt.si/BANK·rupt·cy

Band 6-7task2speaking

a legal state in which a person or business cannot pay its debts and seeks legal protection

Examples

The company filed for bankruptcy after months of declining sales.

Declaring bankruptcy can allow a business to restructure its debts.

Personal bankruptcy carries long-term consequences for credit ratings.

Band 8 sentence

After several quarters of losses, the firm filed for bankruptcy to reorganise its debts.

Collocations

  • file for bankruptcy
  • declare bankruptcy
  • personal bankruptcy

Word family

bankruptcy nounbankrupt adjective/verbbankruptcies noun (plural)

Common mistakes

They filed a bankruptcy.They filed for bankruptcy.

He went to bankruptcy last year.He went bankrupt last year.

Say it for a higher band

5go bankrupt6be insolvent7+bankruptcy

Synonyms

insolvency

ruin

Easily confused

insolvency

The company experienced insolvency long before it declared bankruptcy.

Related words

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In Shopping & Money

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