BANKRUPTbankrupt, adj. Indebted beyond the means of payment; insolvent. ¡ª Also spelled (archaically) bankerout; bankrout. ¡ª bankrupt, vb.
1. A person who cannot meet current financial obligations; an insolvent person. ? This term was used in bankruptcy statutes until 1979, and is still commonly used by nonbankruptcy courts. But the Bankruptcy Code uses debtor instead of bankrupt.
cessionary bankrupt. Archaic. A person who forfeits all property so that it may be divided among creditors. ? For the modern near-equivalent, see CHAPTER7. [Cases: Bankruptcy 2221. C.J.S. Bankruptcy ¡ì 45.]