![Bankruptcy Bankruptcy](https://sp-ao.shortpixel.ai/client/to_auto,q_glossy,ret_img,w_972,h_1296/https://commercial-insurance.broker/wp-content/uploads/wl/2019/01/Bankrupt_computer_store.jpg)
Bankruptcy is a legal status of a person or organization that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person or organization may have, and the term bankruptcy is therefore not a synonym for insolvency.