bankruptcy
noun
Examples of bankruptcy in a Sentence
Matt Craig, Forbes, 21 Nov. 2024
Four additional Big Lots stores in Michigan are preparing to close as the discount retailer navigates Chapter 11 bankruptcy.
Websites for Big Lots locations in Benton Harbor, Livonia, Saginaw and Taylor have a banner at the top announcing the location is closing.
—Tanya Wildt, Detroit Free Press, 21 Nov. 2024
The mall opened in 1962 and over the years has undergone several changes in ownership, a bad fire, and a bankruptcy, The Courier Journal previously reported.
—Maggie Menderski, The Courier-Journal, 21 Nov. 2024
Monthly filing data for personal bankruptcies in the U.S. from 2014 through October of 2024.
—Kate Gibson, CBS News, 20 Nov. 2024
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Dictionary Entries Near bankruptcy
Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 26 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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