Bankruptcy cause is a term used to describe the factors that lead to a business or individual filing for bankruptcy. DEBT, SALE, and RUIN are all potential causes of bankruptcy. DEBT can refer to an accumulation of unpaid bills or loans that become too much for a business or individual to handle. SALE can refer to the liquidation of assets in order to pay off DEBT, which can lead to bankruptcy if not enough money is raised. RUIN can refer to the financial destruction caused by mismanagement of funds or other poor decisions that can lead to bankruptcy.