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What is a bankruptcy?

What is a bankruptcy? Here are some definitions.

Noun
  1. A legally declared or recognized condition of insolvency of a person or organization.
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He is heading towards bankruptcy at a rate of knots, and yet it seems lenders are happy to give him more and more credit.
This bill is about people using the bankruptcy system to evade paying alimony and child support payments.
Her literary debut, The Grass Is Singing, exposed the moral bankruptcy of the white settler culture.
We need to get this company back on the rails before it outsmarts itself into bankruptcy.
I have never come across a business so brilliant, nor one so destined for bankruptcy by 2002, so you must act now.
There are some tables showing trends in bankruptcy over time, but there is not extensive quantitative analysis.

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