Bankruptcy

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization.

History

This word is formed from the ancient Latin bancus a bench, or table, and ruptus, broken. Bank originally signified a bench, which the first bankers had in the public places, in markets, fairs, etc. on which they told their money, wrote their bills of exchange, etc. Hence, when a banker failed, they broke his bank, to advertise the public that the person to whom the bank belonged was no longer in a condition to continue his business. As this practice was very frequent in Italy, it is said the term bankrupt is derived from the Italian banco rotto, broken bench (see e.g. Ponte Vecchio). Others rather choose to deduce the word from the French banque, table, and route, vestigium, trace, by metaphor from the sign left in the ground, of a table once fastened to it and now gone. On this principle they trace the origin of bankrupts from the ancient Roman mensarii or argentarii, who had their tabernae or mensae in certain public places; and who, when they fled, or made off with the money that had been entrusted to them, left only the sign or shadow of their former station behind them.

Related Topics:
Latin - Bank - Italy - Italian - Ponte Vecchio - French

~ ~ ~ ~ ~ ~ ~ ~ ~ ~