Learner's definition of BANKRUPTCY
1 a [noncount] : the condition of being bankrupt: a condition of financial failure caused by not having the money that you need to pay your debts
— often used before another noun b [count] : an occurrence in which a person, business, etc., goes bankrupt
The company is facing bankruptcy.
The company filed for bankruptcy [=officially asked to be legally recognized as bankrupt] in July.
He declared bankruptcy. [=formally said that he was bankrupt in a legal document]
The company is now in bankruptcy. [=has been officially recognized as bankrupt]
The company was forced into bankruptcy.
2 [noncount] : the condition of completely lacking a good or desired quality