act of bankruptcy
noun[C]
ukusLAW
anactionby someone whoowesmoneythat may givepeopletheyowemoneyto areasontoaskacourtto say that they arebankrupt(=legallyunabletopaywhat theyoweandforcedto give upcontroloftheirfinances):
This Agreement may beterminatedif the otherpartycommitsanyactofbankruptcyor has areceivingordermade against it.