Where did the term “bankruptcy” originate?
The term “bankruptcy” has several possible derivations. The first is from the Latin word bancus, meaning “table” or “bench”, and the Latin word ruptus, meaning “broken”. Another possible derivation of “bankruptcy” is Italian. The first bankers did their business in public places, sitting on a bench at fairs and markets. Thus, the word “bank” comes from the word for bench. When the banker was not longer able to practice his business, he signified his inability to keep practicing by literally breaking his bench. (Hence the expression “that broke the bank”). Because such banking practices were common in Italy, the term “bankruptcy” is said to come from the Italian banco rotto, which also means “broken bench”. What happens when someone declares bankruptcy? After division of “non-exempt assets” (which may include cash, personal effects, sporting goods and cars), debtors may usually be discharged of (that is, freed of) their debts, even if the debts have not been fully paid. While the bankru
