Bankruptcy is a term that has been around for centuries and is often associated with financial ruin. It is a legal process where an individual or a business is unable to pay their debts. Bankruptcy can be a complicated and stressful process, but it is important to understand its definition and meaning.
Definitions
A bankrupt is a person or company that is unable to pay their debts and has been declared insolvent by a court of law. Bankruptcy is a legal status that protects the debtor from creditors and allows them to restructure their debts or liquidate their assets to pay off their creditors.
Origin
The word “bankrupt” comes from the Italian word “banca rotta,” which means “broken bench.” In medieval Italy, money changers and lenders would set up their benches in the public square. If they ran out of money, they would break their bench to signal that they were no longer in business. The term “bankrupt” was later adopted in English to describe a person or company that was unable to pay their debts.
Meaning in different dictionaries
The meaning of bankrupts varies slightly in different dictionaries, but they all generally refer to a person or company that is unable to pay their debts. The Oxford English Dictionary defines bankrupt as “a person who is unable to pay their debts and whose property is administered for the benefit of their creditors.” Merriam-Webster defines it as “a person who has been declared legally insolvent.”
Associations
Bankruptcy is often associated with financial ruin and failure. It can be a difficult and stressful process for those who go through it. However, it is also a legal process that can provide relief to individuals and businesses who are struggling with debt.
Synonyms
There are several synonyms for bankrupts, including insolvent, broke, and destitute. These words all refer to someone who is unable to pay their debts.
Antonyms
The antonyms of bankrupts include solvent, wealthy, and prosperous. These words describe someone who is financially stable and able to pay their debts.
The same root words
The word “bankrupt” comes from the Italian word “banca rotta,” which means “broken bench.” The root words of bankrupt are “banca” and “rotta.”
Example Sentences
- John was declared bankrupt after he was unable to pay his debts.
- The company filed for bankruptcy after it was unable to keep up with its expenses.
- Mary was worried about going bankrupt and losing everything she had.
- The bankrupt company was forced to liquidate its assets to pay off its creditors.
- After declaring bankruptcy, the individual was able to restructure their debts and start fresh.