Bankrupt means completely out of money and unable to pay what you owe. When a person or business goes bankrupt, they've run out of resources to cover their debts. A store owner who borrowed money to buy inventory but couldn't sell enough products might declare bankruptcy. A family that took on more debt than they could handle might face bankruptcy after losing a job or facing medical bills.

Bankruptcy is a legal situation where someone officially says they can't pay their debts and needs help sorting things out. Courts get involved to figure out what can be paid back and what debts might be forgiven.

The word also describes having none of something valuable. A person might be morally bankrupt if they've lost all sense of right and wrong. A leader could be intellectually bankrupt if they've run out of good ideas. When someone is emotionally bankrupt, they've exhausted their ability to care or feel. These uses borrow the financial meaning to show a complete emptying out of something that was once valuable.