Bankruptcy
(noun)
The state of being unable to pay one's debts and having one's assets liquidated by a court.
Origin:
From the italian word 'banca rotta', meaning 'broken bench' or 'table' (referring to a trader who was unable to pay his debts and thus had his bench in the marketplace broken).
Examples:
- The company filed for bankruptcy after facing financial difficulties for several years.
- Many small business owners fear bankruptcy due to the pandemic.
- The individual declared bankruptcy after incurring too much debt from credit cards.
- The bank foreclosed on the house after the owner declared bankruptcy.
- Bankruptcy can have a long-lasting effect on one's credit score.