bankrupt

n. [ F. banqueroute, fr. It. bancarotta bankruptcy; banca bank (fr. OHG. banch, G. bank, bench) + rotta broken, fr. L. ruptus, p. p. of rumpere to break. At Florence, it is said, the bankrupt had his bench (i.e., money table) broken. See 1st Bank, and Rupture, n. ] 1. (Old Eng. Law) A trader who secretes himself, or does certain other acts tending to defraud his creditors. Blackstone. [ 1913 Webster ]

2. A trader who becomes unable to pay his debts; an insolvent trader; popularly, any person who is unable to pay his debts; an insolvent person. M‘Culloch. [ 1913 Webster ]

3. (Law) A person who, in accordance with the terms of a law relating to bankruptcy, has been judicially declared to be unable to meet his liabilities. [ 1913 Webster ]

☞ In England, until the year 1861 none but a “trader” could be made a bankrupt; a non-trader failing to meet his liabilities being an “insolvent”. But this distinction was abolished by the Bankruptcy Act of 1861. The laws of 1841 and 1867 of the United States relating to bankruptcy applied this designation bankrupt to others besides those engaged in trade. [ 1913 Webster ]

a. 1. Being a bankrupt or in a condition of bankruptcy; unable to pay, or legally discharged from paying, one's debts; as, a bankrupt merchant. [ 1913 Webster ]

2. Depleted of money; not having the means of meeting pecuniary liabilities; as, a bankrupt treasury. [ 1913 Webster ]

3. Relating to bankrupts and bankruptcy. [ 1913 Webster ]

4. Destitute of, or wholly wanting (something once possessed, or something one should possess). “Bankrupt in gratitude.” Sheridan. [ 1913 Webster ]

Bankrupt law, a law by which the property of a person who is unable or unwilling to pay his debts may be taken and distributed to his creditors, and by which a person who has made a full surrender of his property, and is free from fraud, may be discharged from the legal obligation of his debts. See Insolvent, a. [ 1913 Webster ]