When a company cannot pay its creditors and cannot get hold of bank loans, it is in a state of bankruptcy.  Either the company itself or its creditors can apply for bankruptcy.

A private person can also be declared bankrupt.

Update 30/5/2016

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at