Meaning of “act of bankruptcy” in the English Dictionary

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"act of bankruptcy" in Business English

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act of bankruptcynoun [ C ]

uk us

LAW an action by someone who owes money that may give people they owe money to a reason to ask a court to say that they are bankrupt (= legally unable to pay what they owe and forced to give up control of their finances):

This Agreement may be terminated if the other party commits any act of bankruptcy or has a receiving order made against it.

(Definition of “act of bankruptcy” from the Cambridge Business English Dictionary © Cambridge University Press)