'bankruptcy' originates from Italian, specifically the phrase 'banca rotta', where 'banca' meant 'bench' and 'rotta' meant 'broken'.

'bankruptcy' changed from the Italian phrase 'banca rotta' into Early Modern forms (e.g., Old French/Medieval Latin adaptations) and eventually became the modern English word 'bankruptcy'.

Initially, it meant 'broken bench' (referring to a moneylender's bench being broken to signal inability to trade/pay); over time it evolved into its current meaning of 'inability to pay debts' and the legal process addressing that condition.