the state of being unable to repay debts (=money owed) Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history.
- The company was placed in bankruptcy by the court.
- It was announced that Chrysler has entered into bankruptcy proceedings.
- The investment bank is seeking bankruptcy protection from creditors (=those that are owed money).
- The reorganisation plan (=proposal to rescue the company from bankruptcy) was submitted to the bankruptcy court.
- You have the right to apply for a bankruptcy order.
- Bankruptcy can occur when an individual's debts (=what they owe) are greater than his or her assets (=what they own).
- In some jurisdictions, such as the United States, bankruptcy relates to a company or individual. In other jurisdictions, such as the United Kingdom, the term has until recently been used exclusively in relation to individuals and partnerships but not companies, which go into (insolvent/insolvency) liquidation. However, in informal speech and in the media, the term bankruptcy is used for companies as well.