B. A restriction on the collection of debts.
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to pronunciation.Legal Definition -
Bankruptcy A bar to all judicial and extra judicial collection efforts against a debtor or a debtor's property. Black's Law Dictionary® Eighth Edition © 2004
Recent Usage -
"A hospital district that serves the East San Francisco Bay region filed for bankruptcy, claiming it had at least $50 million in debts. Doctors Medical Center will remain open while the West Contra Costa Healthcare District goes through Chapter 9 bankruptcy proceedings. The filing Sunday will allow the hospital to line up new financing, attorneys said.
'The filing of the case activates something called an 'automatic stay,' a federal injunction that prohibits creditors from collection efforts from this day forward,' said Andrea Porter, a San Francisco attorney representing the health care organization. 'We have a whole new ball game today.'
The filing with the U.S. Bankruptcy Court in Oakland listed $50 million to $100 million in debts and the same dollar range for assets.
SFGate.com, Associated Press