Bankruptcy's a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they're owed or initiate a restructuring. In the majority of cases, however, bankruptcy's initiated by the debtor (a "voluntary bankruptcy" that's filed by the insolvent individual or organization). History The West In ancient Greece, bankruptcy didn't… (More on Bankruptcy)