Bankrupting

Bankrupting refers to the act of causing a person, company, or organization to be financially ruined; to render someone or something insolvent. This process involves a lack of funds to pay debts, leading to the formal declaration of bankruptcy, or the practical equivalent thereof. bankrupting can result from poor financial management, market downturns, excessive debt, unexpected legal liabilities, or competition. The consequences of bankrupting extend beyond mere financial loss; it also impacts credit ratings, business operations, and individual livelihoods. It implies a state of insolvency and the inability to fulfill financial obligations. The term often signifies the failure of a business or individual.

Bankrupting meaning with examples

• The reckless investments in the dot-com bubble eventually had the effect of bankrupting several venture capitalists, as the market crashed and the funding dried up. Many investors lost everything. This left them unable to fulfill their financial commitments.
• The prolonged strike against the auto manufacturer ended up bankrupting the union strike fund, and the workers, when they went back to work, found their wages cut to pre-strike levels, and some had no jobs.
• The government's decision to impose crippling tariffs had a dramatic effect on small businesses, effectively bankrupting many exporters who struggled to compete with international suppliers. The company had no option left.
• The legal battle, over the patent infringement, went on for years and ended up bankrupting both parties; despite the outcome, neither company survived the financial strain of the expensive legal costs and judgements.
• Years of mismanagement and fraudulent practices ultimately led to bankrupting the entire organization, leaving its employees without jobs and its stakeholders with substantial losses. The collapse was inevitable.