🇬🇧 Bankruptcy meaning: English Vocabulary Flash Card

Bankruptcy is a situation where a person or a business has so little money that they cannot pay back the people they owe, and a court officially says they are bankrupt. It’s like when you promise to pay your friends back for snacks, but you spent all your allowance, your piggy bank is totally empty, and an adult has to step in and make new rules about how and when things can be paid, or even erased. Bankruptcy is a serious money problem that helps organize what happens when debts are too big to pay.

The Tooth Fairy almost faced bankruptcy after visiting a whole second grade in one night.

Grandma joked that if we keep borrowing cookies from her, she’ll have to announce cookie bankruptcy.

My video game character suffered instant bankruptcy after buying 4,000 virtual rubber chickens for no reason at all.

The wizard’s spell shop went into bankruptcy because every spell turned customers into llamas.

In real life, bankruptcy is a legal way to deal with debts that are too big to pay, kind of like hitting a money reset button.

Sam's bakery had an empty till and a stack of unpaid bills. A bank letter arrived: a bankruptcy notice. Sam signed bankruptcy papers, handed the keys to the landlord, and shut the lights. Neighbors watched, then bought the last loaf. After bankruptcy calls stopped, Sam felt odd relief — bankruptcy had closed the shop and bankruptcy quieted his days.

This word is at the C2 level, which means it represents the highest mastery of English. It’s often used in specialized or highly formal contexts and helps you communicate with precision and subtlety, much like a native speaker.

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