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VORADictionaryC1Bankruptcy
CEFR C1 — Advanced

Bankruptcy

Definition

(formal) The state of being unable to pay debts, resulting in the official declaration of insolvency and often leading to the closure of a business or the loss of personal assets.

Example Sentences

1The company filed for bankruptcy after failing to recover from the economic downturn.
2What are the consequences of declaring bankruptcy for an individual's credit rating?
3The rise in bankruptcy cases among small businesses has raised concerns about the impact of government policies on entrepreneurship.
4To avoid bankruptcy, the company underwent a major restructuring, including significant layoffs and asset sales.
5There is a growing debate about the effectiveness of bankruptcy laws in protecting the rights of both creditors and debtors.

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