bankrupt

A person or company that's bankrupt can't pay their debts.

Bankruptcy usually means when someone has spent more money than they have. Imagine being at the grocery store and realizing you don't have enough cash to buy everything on your list - you're a bit short of funds, right? Well, bankruptcy is kind of like that, but for a person or business as a whole. When someone goes bankrupt, it means they can't afford to pay their bills or loans back, so they go through a process called bankruptcy. This way, the courts can sort out who gets paid what and how much debt the person or company has left over. It's not always easy for them, but sometimes it's better than getting in even deeper trouble.