Forms: 6 banke rota, banckroupt(e, banckerout, banquerowpte, banqwerooute, 6–7 banckrout, banque-, banqrout(e, banke-, bankrout(e, bankerupt, 7 bankcrout, banck-, banquerupt, (bankrup, banker-up), 6– bankrupt. [In 16th c. banke rota, banqueroute, a. It. banca rotta (Florio), and its F. adaptation banqueroute (in Cotgr. banqueroutte), with the second part subsequently assimilated to the equivalent L. ruptus, as in abrupt, etc. The It. banca rotta is literally ‘bank broken,’ or ‘bench broken.’ The transference of sense from the fact to the agent (in sense 2) is peculiar to Eng.: cf. BANKRUPT a. and med.L. ruptus.
According to Johnson ‘it is said’ that when an Italian money-changer became insolvent, ‘his bench was broke.’ But rotto, rotta is also ‘wrecked’ (used of a ship); and fig. ‘discomfited, defeated, interrupted, stopped.’ Cf. the familiar use of break = become insolvent, broken insolvent; also med.L. ruptura failure, ruptus broken man, bankrupt, ‘creditorum fraudator, aut decoctor, qui dissolvit argentariam et foro cedit’ in Du Cange, who has an example dated 1334.]
† 1. The wreck or break-up of a trader’s business in consequence of his failure to pay his creditors; or (in early use) his shutting up or desertion of his place of business without payment of his liabilities. Chiefly in the phrase ‘to make bankeroute’ or ‘bankrupt’ (Fr. faire banqueroute, 1536). Afterwards called bankrupting, bankruptism, bankrupture, bankruptship, and now BANKRUPTCY, q.v. Obs.
1539. State Papers Hen. VIII., I. 609. With danger to make banke rota.
1543. Act 34 Hen. VIII., iv. (title), An Act against suche parsons as do make bankrupt.
1562. Bulleyn, Bk. Simples, in Babees Bk. (1868), 241. Vtterly vndone, and cast either into miserable pouertie, prisonment, bankeroute, &c.
1663. Gerbier, Counsel, E j b. Trade strengthned, encreased, and many Bankrouts prevented.
1684. Lond. Gaz., No. 1980/4. Empowered by the Commissioners of Bankrupt.
1712. Arbuthnot, John Bull (1755), 35. A statute of bankrupt.
2. A merchant, trader, or other person, whose property and effects, on his becoming insolvent, are administered and distributed for the benefit of all his creditors, under that system of statutory regulations called the Bankrupt or Bankruptcy Laws. As these laws (which began in England with Acts 34 and 35 Henry VIII., c. 4) were originally directed against fraudulent traders, who absconded with the property of their creditors, or eluded the attempts of creditors to get at them, the earlier senses were:
† a. in Law. ‘A trader who secretes himself, or does certain other acts tending to defraud his creditors.’ Blackstone.
† b. popularly. One who has brought himself into debt by reckless expenditure or riotous living; a fugitive from his creditors, a broken man in sanctuary or outlawry. (In these senses the bankrupt was a criminal.)
1533. More, Apol., xxi. Wks. 881/2. Suche bancke rouptes … which whan they haue wasted and missespent their own, woulde than be very faine … robbe spirituall and temporall to.
1548. Hall, Chron. Hen. VII., an. 11. 37. Some Banqueroutes, some false Englyshe sanctuary men, some Theues.
1580. Baret, Alv., B 140. One that hath riotously wasted his substance, a banqueroute, Decoctor.
1593. R. Harvey, Philad., 80. By gathering more bankrupts & ruffians to his side.
1613. R. C., Table Alph., Bankerupt, bankrout, waster.
1614. Raleigh, Hist. World, IV. vii. § 1. 533. Upon instigation of some desperate bankrouts … they made an uproar.
1678. Marvell, Corr., 358, Wks. II. 628. A Generall Bill … to find a more effectuall way for discovering of the Estates of Bankroutes.
1709. Steele, Tatler, No. 44, ¶ 6. He can no more live here than if he were a downright Bankrupt.
By gradual extension of sense, and modifications of the statutes of bankruptcy.
† c. in Law. Also, a trader, who did certain acts which had the effect of defeating his creditors of their property, without reference to any intention on his part.
d. in Mod. Law. Any trader or other person insolvent, who, on the petition of a creditor or creditors, or on his own petition, to the Bankruptcy Court, is declared or adjudged bankrupt, and his estates administered as stated above.
Formerly only a trader could be made a bankrupt; other persons became insolvent; in U.S. the legal distinction between the two was abolished in 1841, and in England in 1869; it had long before disappeared in popular use.
1707. Lond. Gaz., No. 4335/4. A Commission of Bankrupt being awarded against John Oliver … and he being declared a Bankrupt.
1718. Free-thinker, No. 86. 215. A Friend of mine … had lately the Misfortune to become a Bankrupt.
1869. Act 32–3 Victoria, lxxi. 76. A single creditor … of not less than fifty pounds, may present a petition to the Court, praying that the debtor be adjudged a bankrupt.
e. popularly. An insolvent debtor; one who is unable to meet his liabilities, whether he is in the Bankruptcy Court or not.
1580. Sidney, Arcadia, VI. 503. Shall my meanes help to make up a bankrout in his estate.
1596. Shaks., Merch. V., IV. i. 122. To cut the forfeiture from that bankrout there.
† f. To play the bankrupt: to become insolvent, to fail to pay one’s debts; often, to play false with the money of others, and fig. to prove false to a trust of any kind. Obs.
1577. Holinshed, Chron., III. 812/2. Jerome Bonuise, which had plaied bankerupt, and was conueied out of the realme for debt.
1580. Ord. Prayer, in Liturg. Serv. Q. Eliz. (1847), 573. Till he have gotten great sums of money in his hand, that he may play the Bankeroute, to the undoing of such as trust him.
1614. Sylvester, Bethulia’s Rescue, III. 70. And with th’ Almighty playing banque-rout, With greater Rage his law they persecute.
1623. Bacon, Wks. (1834), XII. 448. These modern languages will, at one time or other, play the bankrupts with books.
1643. Horn & Robotham, Gate Lang. Unl., § 865. Hee is constrained to breake (play the bankrout), and to borrow of one and pay another.
c. 1660. J. Harington, Epigr., in Singer, Playing Cards, 254. The last game now in use is Bankerout, Which will be plaid at still, I stand in doubt, Until Lavolta turn the wheel of time.
3. transf. One hopelessly in debt; one who has lost all his means, and is without resources.
1586. T. B., La Primaud. Fr. Acad. (1594), 206. Perceiving themselves to be brought to the estate of bankrupts, as we commonly saie.
1594. Drayton, Idea, 41. All is Thine which hath been due to Me, And I a Bankrupt, quite undone by Thee.
1600. C’tess Essex, in Ellis, Orig. Lett., I. 237, III. 57. To recken my self a bankcrout till I have yeelded you some demonstrative testimonie.
c. 1620. Z. Boyd, Zion’s Flowers (1855), 49. He who in sloath doth like a Dor-Mouse sleepe, Shall at the last sure prove a Banker-up.
b. fig. (Cf. BANKRUPT a. 2.)
1579. Lyly, Euphues (Arb.), 141. Not onely unthrifts of their money but banckerouts of good manners.
4. attrib., as in bankrupt laws, system; also bankruptlike adj.
1668. Rolle, Abridgem., I. 47. Thou art a bankruptlike knave.
1809. R. Langford, Introd. Trade, 116. The bankrupt laws in England do not extend to Scotland.
