Act of bankruptcy

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(Law) an act of a debtor which renders him liable to be adjudged a bankrupt.

See also: Act

References in periodicals archive ?
They're going to hide behind this cowardly act of bankruptcy and try to make it sound like we're being greedy.
The act of bankruptcy won't go away, but we can make it a little less painful and equitable for the parties involved.
The act of bankruptcy itself generally is an indication of at least partial worthlessness, and many times will establish worthlessness if it is obvious before the settlement date that there are no assets to be distributed to the creditor.