In Arabic iflas (إفلاس). In general, it is a situation when a person runs short of funds. The bankrupt person may have no money at all or may have some but not enough to pay what he owes others. In business, bankruptcy takes place when the debts of a person (natural person or legal person) exceed his money (or wealth).
For example, a company may go bankrupt if its total liabilities exceed the value of its assets. However, bankruptcy becomes confirmed when legal proceedings are taken against the firm by a sufficient number of its qualified creditors who would file a petition to that effect.
