Pleite

Pleite is a German noun meaning bankruptcy or insolvency; it refers to the situation of a person or company that cannot meet financial obligations. The phrase "die Pleite" can describe the failure of a business venture. As an adjective, "pleite" is colloquial for being without money; "Ich bin pleite" means I’m broke. Verbs include "pleitegehen" (to go bankrupt) and "pleitemachen" (to cause someone to go bankrupt or to ruin financially). Examples: "Die Firma ging pleite." "Ich bin pleite." "Sie ist pleitegegangen." The term is common in everyday language and media but is not a formal economic term.

In formal contexts, insolvency is described with the term "Insolvenz." The German-speaking jurisdictions of Germany, Austria, and Switzerland regulate insolvency under dedicated laws (for example, the Insolvenzordnung in Germany). The process typically involves parties such as creditors and an insolvency administrator (Insolvenzverwalter) and may lead to outcomes like debt discharge for individuals (Restschuldbefreiung). While "Pleite" conveys the event in everyday speech, official documents use "Insolvenz" or "Insolvenzverfahren." The distinction between colloquial usage and legal terminology is important for clarity in business communication.

Across German-speaking countries, the term retains a similar meaning, though formal terminology varies by jurisdiction. In translations to English, "bankruptcy" or "insolvency" is used depending on the context and the stage of proceedings.