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

'banca rotta' transformed into the French word 'banqueroute,' and eventually became the modern English word 'bankruptcy' through Middle English.

Initially, it meant 'broken bench,' referring to the practice of breaking a moneylender's bench to signify insolvency, but over time it evolved into its current meaning of 'legal insolvency.'