The state, condition, or rank of being bankrupt; bankruptcy (archaic term combining 'bankrupt' with '-ship' suffix).
From 'bankrupt' plus '-ship' suffix (meaning state or condition, as in 'friendship,' 'kingdom'), an archaic formation that predates the more common term 'bankruptcy'.
Old English used '-ship' to denote rank and status, which is why we still have 'friendship' and 'leadership'—'bankruptship' is a ghost word from when this was the primary way to name conditions!
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