Bankruptcy

Meaning

When a business can’t pay what it owes, it has to declare bankruptcy. The business is dissolved and its assets used to pay what it owes.

Key points

• Bankruptcy appears frequently in invoicing, payment handling, and bookkeeping workflows.
• The term improves clarity between clients, suppliers, and accounting teams.
• Consistent use supports cleaner documentation and better reporting quality.

Practical use

In Nexbal workflows, bankruptcy is used to keep invoice and payment operations structured and auditable.