Bankerupt is a financial term that describes a situation where an individual or organization is unable to meet their debt obligations. This can occur due to various reasons, such as poor financial management, unexpected expenses, or economic downturns. When someone is declared bankrupt, their assets may be liquidated to pay off creditors. In many countries, bankruptcy is a legal process that provides relief to those in financial distress. It allows individuals or businesses to reorganize their debts or eliminate them entirely, giving them a fresh start. However, bankruptcy can have long-lasting effects on credit ratings and financial stability.