What does act of bankruptcy mean?

act of bankruptcy meaning in Law Dictionary

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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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