Legal Definitions - bankrupt

Bankrupt is an adjective used to describe a person or company that owes more money than they can pay back. It means they are insolvent and cannot meet their financial obligations.

Bankrupt can also be used as a verb, meaning to declare someone or something bankrupt. Additionally, it can be a noun referring to a person who is unable to pay their debts.

Example 1: John's business went bankrupt because he couldn't pay his bills.

Example 2: The company was declared bankrupt by the court after failing to pay its creditors.

Example 3: The bankruptcy laws were changed in 1979, and now the term debtor is used instead of bankrupt in the Bankruptcy Code.

Example 4: Mary was a bankrupt and had to forfeit all her property to be divided among her creditors.

These examples illustrate how the term bankrupt is used to describe a person or company that is unable to pay their debts. It can have serious consequences, such as losing property or being declared insolvent by a court.