bankruptcy
noun
Examples of bankruptcy in a Sentence
Next Avenue, Forbes, 27 Jan. 2025
His prior experience includes financial restructuring at Northwest Airlines during its bankruptcy proceedings.
—Natalie Neysa Alund, USA TODAY, 25 Jan. 2025
Earlier this month it was reported that bankruptcy proceedings are underway at the Inskaya mine in the Kemerovo region at the request of the Federal Tax Service due to a debt of 230 million rubles ($2.3 million).
—Gordon G. Chang, Newsweek, 24 Jan. 2025
Gensler had defended the rule as necessary to protect investors in the event of crypto firm bankruptcies.
—Mackenzie Sigalos, CNBC, 24 Jan. 2025
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Cite this Entry
“Bankruptcy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/bankruptcy. Accessed 2 Feb. 2025.
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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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