bankruptcy
noun
Examples of bankruptcy in a Sentence
Quartz Bot, Quartz, 7 Nov. 2024
Most recently, in the bankruptcy proceedings for Silvergate Bank, an executive testified that the bank shut down because regulators didn't offer it a path forward.
—Brady Dale, Axios, 5 Nov. 2024
After filing for Chapter 11 bankruptcy last week, the chain is now contending with the expensive possibility of customers trying to redeem $49.7 million of gift cards that never expire.
—Sasha Rogelberg, Fortune, 5 Nov. 2024
The franchisee owner-operators are not part of the Franchise bankruptcy.
—Vicki M. Young, Sourcing Journal, 4 Nov. 2024
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Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 22 Nov. 2024.
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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.
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