1 (of a person or organization) declared in law unable to pay outstanding debts:
the company was declared bankrupt |
his father went bankrupt and the family had to sell their home .
■impoverished or depleted:
a bankrupt country with no natural resources.
2 completely lacking in a particular quality or value:
their cause is morally bankrupt.
a person judged by a court to be insolvent, whose property is taken and disposed of for the benefit of creditors.
▶v. [with obj.]
reduce (a person or organization) to bankruptcy:
the strike nearly bankrupted the union.
mid 16th cent.: from Italian banca rotta ‘broken bench,’ from banca (see bank(2)) and rompere ‘to break.’ The change in the ending was due to association with Latin rupt- ‘broken.’
New Oxford American Dictionary © 2010 Oxford University Press
As consumer debt has skyrocketed to over $3 Trillion, many believe the only way out from under the mountain of bills is to declare bankruptcy. But is it right for you? Many myths persist to misinform the public.
“Probably the worst myth about bankruptcy is that you need to be flat broke before you should file,” says Sacramento bankruptcy attorney Gerald B. Glazer. “It is not good to wait until creditors are knocking on your door,” according to Glazer. Planning can prepare you for a bankruptcy that causes the least amount of financial disruption.
I hope nobody I know needs to file for bankruptcy!