meaning of act of bankruptcy

act of bankruptcy meaning in Law Dictionary

ee ACT.

act of bankruptcy meaning in Business Dictionary

Debtor's activity which could trigger his or her creditors to petition courts to declare them broke (to be able to force a-sale of debtor's assets to meet their statements). In certain jurisdictions, any failure to pay for an obligation (above a certain amount) on deadline may constitute an act of bankruptcy.

Sentence Examples with the word act of bankruptcy

In May the Portuguese government committed a formal act of bankruptcy by issuing a decree reducing the amount then due to foreign bondholders by two-thirds.

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