What does bankruptcy mean?

bankruptcy

Bankruptcy is when a person or business legally states that they can't pay back their debts.

Bankruptcy is a formal process where an individual or company admits legally that they are unable to pay their debts. This process involves legal proceedings where assets may be used to pay off debts, and certain legal protections are put in place. It's often seen as a last resort and can have significant financial and legal implications. Bankruptcy laws are designed to provide a way out for those overwhelmed by debt, while also protecting creditors to some extent.

Explore more terms

Whether you're looking for definitions of other related terms or just browsing, our full list offers a wealth of information at your fingertips.

Back to Glossary

Other glossary terms

personal leave



Personal leave (also known as sick leave) is paid leave that an employee is entitled to when they are unable to work due to illness or injury.

stand down



When an employee is told not to go to work by an employer because they cannot be usefully employed due to specified circumstances.

small business employer



A small business employer is an employer with fewer than 15 employees at a particular time. They are no longer a small employer with 15 or more employees

workplace delegate



A workplace delegate is an employee appointed or elected under the rules of an employee organisation who represent members of the organisation at work.