noun · formal
bankruptcy
/ˈbæŋ.krʌpt.si/BANK·rupt·cy
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
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 bankrupt→6be insolvent→7+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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