Meaning of the word "file for bankruptcy" in English

What does "file for bankruptcy" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

file for bankruptcy

US /faɪl fɔr ˈbæŋkrəpt.si/
UK /faɪl fɔː ˈbæŋkrəpt.si/
"file for bankruptcy" picture

Idiom

to formally declare that you are unable to pay your debts

Example:
After years of financial struggle, the company decided to file for bankruptcy.
Many small businesses were forced to file for bankruptcy during the economic downturn.