Critics view the decision as an example of moral/ethical 'bankruptcy' on the part of the administration.
The company 'filed for bankruptcy' [=officially asked to be legally recognized as bankrupt] in July.
He 'declared bankruptcy'. [=formally said that he was bankrupt in a legal document]
(..) We tried to sell the company to pay the million they said we owed in royalties, but I guess to them that was a little like selling a stolen car to pay for the stolen gas. So we said screw it, declared bankruptcy. ' But you made a name for yourself. ' And you are dry. ' Tori! ' No, no, I'm good. (..)2010 The Social Network