倒産 in 30 Seconds
- Refers to corporate bankruptcy/insolvency.
- Used for businesses, not individuals.
- Implies inability to pay debts (involuntary).
- Common in news and formal business contexts.
The term 倒産 (Tōsan) is a cornerstone of Japanese economic and business vocabulary. At its most fundamental level, it refers to the state in which a business entity—typically a corporation—becomes unable to fulfill its financial obligations to creditors, leading to a cessation of its primary operations. Unlike simple 'closing down' (閉店 - heiten) or 'voluntary dissolution' (廃業 - haigyō), 倒産 carries a heavy legal and financial weight, implying that the company has 'collapsed' under the pressure of debt. In the Japanese legal context, 倒産 is an umbrella term that covers several specific procedures, including 破産 (hasan - liquidation), 民事再生 (minji saisei - civil rehabilitation), and 会社更生 (kaisha kōsei - corporate reorganization). Understanding this word requires looking beyond the dictionary definition and into the socio-economic fabric of Japan, where corporate stability is highly valued and failure is often viewed with significant social gravity.
- Etymological Breakdown
- The first kanji, 倒 (tō), means 'to fall,' 'to collapse,' or 'to be overturned.' It is the same character used in 倒れる (taoreru), describing a person falling over or a building collapsing. The second kanji, 産 (san), refers to 'industry,' 'property,' or 'production.' Together, they literally translate to the 'collapse of the industry/property' of a specific entity.
- Legal vs. Social Definition
- Legally, a company is considered in a state of 倒産 when it stops making payments (支払停止) or when it is insolvent (債務超過). Socially, it is often announced through news outlets like the Teikoku Databank, which tracks corporate failures across the nation. It is a word that signals the end of an era for employees, suppliers, and the local community.
「長年親しまれてきた地元の百貨店が、ついに倒産したというニュースを聞いて驚いた。」
— Translation: I was shocked to hear the news that the local department store, which had been loved for many years, finally went bankrupt.
Historically, the frequency of 倒産 in Japan has served as a barometer for the health of the national economy. During the 'Lost Decades' following the burst of the bubble economy in the early 1990s, the word was a constant fixture in headlines. It evokes images of 'salarymen' suddenly losing their livelihoods and the 'chain-reaction bankruptcy' (連鎖倒産 - rensa tōsan) that can devastate supply chains. In modern Japan, while the stigma remains, there is an increasing focus on 'rehabilitation-type' 倒産, where companies seek legal protection to restructure and continue operating rather than simply disappearing.
The company ceases to exist.
The company tries to survive.
Using 倒産 correctly requires an understanding of its grammatical role as a noun that frequently functions as a Suru-verb (倒産する). However, because bankruptcy is often something that happens *to* a company due to external forces, passive or causative-passive constructions are very common in formal reporting. You will often see it paired with verbs like 追い込まれる (oikomareru - to be driven into) or 免れる (manareru - to escape/avoid).
- Common Verb Pairings
- 倒産に追い込まれる: To be forced into bankruptcy. (Example: 深刻な不況により、多くの企業が倒産に追い込まれた。)
- 倒産を免れる: To narrowly avoid bankruptcy. (Example: 政府の支援金のおかげで、倒産を免れた。)
- 倒産危機: Bankruptcy crisis. (Example: あの航空会社は今、倒産危機に瀕している。)
「無理な経営拡大がたたり、その会社はわずか三年で倒産に追い込まれた。」
— Translation: Due to reckless business expansion, the company was forced into bankruptcy in just three years.
In business writing, precision is key. If you are describing a company that has stopped paying its bills but hasn't yet gone through legal proceedings, you might use 事実上の倒産 (jijitsujō no tōsan - de facto bankruptcy). If you are discussing the *risk* of bankruptcy, the term 倒産リスク is standard. It is also important to note the register: 倒産 is a formal, objective term. In casual conversation, people might say つぶれる (tsubureru - to be crushed/go bust), which is much more colloquial and emotional.
Frequency of Usage by Context:
News & Economics (95%)
Business Meetings (70%)
Casual Daily Talk (30%)
You are most likely to encounter 倒産 in environments where economic news is disseminated. It is a staple of the 7 PM and 9 PM national news broadcasts on NHK, especially during fiscal year-end reports (March) or during global economic downturns. Financial newspapers like the Nihon Keizai Shimbun (Nikkei) use it daily to describe the shifting landscape of Japanese industry. In these contexts, the word is often accompanied by statistics regarding the 'number of cases' (倒産件数 - tōsan kensū) and the 'total liabilities' (負債総額 - fusai sōgaku).
- In Popular Culture
- Japanese dramas (TV dramas) often use 倒産 as a central plot device. In the famous series Hanzawa Naoki, the protagonist often deals with companies on the brink of bankruptcy, and the tension revolves around whether a bank will continue to lend money or force a 倒産. In these stories, 倒産 is portrayed as a tragedy that affects not just the CEO, but every single employee and their families.
「ニュース速報：大手旅行代理店が負債額100億円で倒産しました。」
— Translation: Breaking News: A major travel agency has gone bankrupt with 10 billion yen in debt.
In a professional setting, such as a B2B sales meeting or a credit management department, 倒産 is discussed with extreme caution. Companies perform 'credit checks' (与信管理) to ensure their partners are not at risk of 倒産. If a partner company does go bankrupt, it triggers a 'bad debt' (貸倒れ - kashidaore) situation, which can lead to the aforementioned 'chain-reaction bankruptcy.' Therefore, hearing this word in a meeting usually signals a high-alert situation requiring immediate legal and financial strategy.
Common Phrases in Media:
- 大型倒産 (Ōgata tōsan) - Large-scale bankruptcy.
- 倒産ドミノ (Tōsan domino) - Domino effect of bankruptcies.
- 倒産予備軍 (Tōsan yobigun) - Companies on the verge of bankruptcy.
The most frequent mistake learners make with 倒産 is failing to distinguish it from 破産 (Hasan). While they are often used interchangeably in casual English as 'bankruptcy,' in Japanese, 破産 is a specific legal sub-category of 倒産. Specifically, 破産 refers to 'liquidation'—where assets are sold off and the company is completely dissolved. 倒産 is the broader term that also includes 'rehabilitation' (where the company stays alive). Using 破産 when a company is actually undergoing 'Civil Rehabilitation' (民事再生) would be a factual error in a business context.
- Mistake 1: Personal vs. Corporate
- Learners often say 「私は倒産しました」 (I went bankrupt). This sounds very strange because 倒産 is for businesses. For personal financial failure, you must use 自己破産 (jiko hasan).
- Mistake 2: Confusing with 閉店 (Heiten)
- If a small ramen shop closes because the owner is retiring, that is 閉店 or 廃業. Calling it 倒産 implies they failed financially and couldn't pay their debts, which might be an insult to a successful owner who is simply retiring.
❌ 「田中さんは借金が多くて倒産した。」
✅ 「田中さんは借金が多くて自己破産した。」
— Correction: Use 'Jiko Hasan' for individuals.
Another mistake is the grammatical particle usage. You 'fall into' bankruptcy, so 倒産にいたる (reach bankruptcy) or 倒産に追い込まれる are correct. Using 倒産をさせる (to make someone/something go bankrupt) is possible but rare; usually, you would say 倒産に追い込む (to drive someone into bankruptcy) if you are the aggressive competitor or creditor.
To truly master 倒産, you must understand its place within a cluster of related terms that describe business failure, closure, and financial distress. Each has a specific nuance that changes based on the legal status and the intent of the business owner.
- 1. 破綻 (Hatan)
- Meaning 'failure' or 'collapse.' While 倒産 is specifically about business, 破綻 is broader. You can have 経営破綻 (business failure), but also 人間関係の破綻 (breakdown of a relationship) or 論理の破綻 (breakdown of logic). It sounds more abstract and dramatic than the technical 倒産.
- 2. 廃業 (Haigyō)
- Meaning 'discontinuing a business.' This is often voluntary. A company might be profitable but choose 廃業 because there is no successor (後継者不足). 倒産 is involuntary and forced by debt.
- 3. 破産 (Hasan)
- Meaning 'bankruptcy' in the sense of total liquidation. As mentioned, this is a legal subset of 倒産. If a company goes through 破産, it is gone forever. If it goes through 民事再生, it is a 倒産 but the company survives.
「その会社は倒産したが、民事再生法を適用して再建を目指している。」
— Translation: The company went bankrupt (tōsan), but it is aiming for reconstruction by applying the Civil Rehabilitation Act.
Other related terms include 債務超過 (saimu chōka), which means 'insolvency' or 'liabilities exceeding assets.' This is the financial state that usually leads to 倒産. There is also 黒字倒産 (kuroji tōsan), a fascinating term meaning 'profitable bankruptcy.' This happens when a company has plenty of sales and profit on paper, but runs out of actual cash (liquidity) to pay its immediate bills. It is a common cautionary tale in Japanese business schools.
How Formal Is It?
Difficulty Rating
Grammar to Know
~によって (Due to/By means of)
~に追い込まれる (To be forced into)
~おそれがある (There is a risk/fear that)
~に伴い (Along with/As a result of)
~ざるを得ない (Cannot help but/Have no choice but)
Examples by Level
あの会社は倒産しました。
That company went bankrupt.
Noun + shimashita (past tense verb).
倒産はとても悲しいことです。
Bankruptcy is a very sad thing.
倒産 is the subject here.
大きいデパートが倒産しました。
A big department store went bankrupt.
Adjective + Noun + Verb.
どうして倒産したのですか？
Why did it go bankrupt?
Question form using 'no desu ka'.
倒産した店に行きました。
I went to the store that went bankrupt.
Relative clause: [tōsan shita] mise.
ニュースで倒産を知りました。
I learned about the bankruptcy from the news.
Particle 'de' indicates the source.
倒産すると、仕事がなくなります。
If a company goes bankrupt, jobs are lost.
Conditional 'to' (if/when).
私の町で古い工場が倒産した。
An old factory in my town went bankrupt.
Location particle 'de'.
不況で多くの店が倒産している。
Many stores are going bankrupt due to the recession.
Te-iru form for ongoing state/trend.
倒産した会社の社長が謝罪した。
The president of the bankrupt company apologized.
Noun modification.
その銀行は倒産する心配はありません。
There is no worry that the bank will go bankrupt.
Noun + shinpai (worry).
倒産を避けるために努力しています。
We are making efforts to avoid bankruptcy.
Tame ni (in order to).
急に倒産したので、みんな驚いた。
Because it went bankrupt suddenly, everyone was surprised.
Adverb 'kyū ni'.
倒産のニュースを聞いて、悲しくなった。
I became sad after hearing the news of the bankruptcy.
Tōsan no news (news of bankruptcy).
彼は倒産した会社で働いていました。
He used to work at a company that went bankrupt.
Past continuous/state.
倒産は他人事ではありません。
Bankruptcy is not someone else's problem.
Idiomatic expression 'hitogoto dewa nai'.
経営不振により、ついに倒産に追い込まれた。
Due to poor management, they were finally forced into bankruptcy.
Ni yori (due to) + passive form.
連鎖倒産を防ぐための対策が必要だ。
Measures are needed to prevent chain-reaction bankruptcies.
Compound noun 'rensa tōsan'.
倒産の手続きには時間がかかる。
The bankruptcy procedures take time.
Particle 'ni wa' for requirements.
あの会社が倒産するなんて信じられない。
I can't believe that company is going bankrupt.
Nante (expresses surprise).
倒産しても、再起のチャンスはある。
Even if you go bankrupt, there is a chance for a comeback.
Te-mo (even if).
負債が多すぎて、倒産は免れないだろう。
With too much debt, bankruptcy is likely unavoidable.
Manarenai (unavoidable).
倒産をきっかけに、新しいビジネスを始めた。
Using the bankruptcy as a turning point, I started a new business.
Wo kikkake ni (taking as an opportunity).
倒産件数が前年比で減少した。
The number of bankruptcies decreased compared to the previous year.
Zennenhbi (compared to last year).
事実上の倒産状態にあると言わざるを得ない。
I must say that it is in a state of de facto bankruptcy.
Iwa-zaru wo enai (cannot help but say).
黒字倒産は、キャッシュフローの管理不足が原因だ。
Profitable bankruptcy is caused by poor cash flow management.
Kuroji tōsan (profitable bankruptcy).
倒産危機の噂が広まり、株価が暴落した。
Rumors of a bankruptcy crisis spread, and the stock price plummeted.
Tōsan kiki (bankruptcy crisis).
裁判所に倒産手続の開始を申し立てた。
They petitioned the court for the commencement of bankruptcy proceedings.
Mōshitateta (petitioned/filed).
倒産に伴い、全従業員が解雇された。
Along with the bankruptcy, all employees were dismissed.
Ni tomonai (accompanying/along with).
その企業は倒産を免れるために資産を売却した。
The company sold off assets to avoid bankruptcy.
Shisan wo baikyaku (sell assets).
倒産回避に向けた再建計画が発表された。
A reconstruction plan aimed at avoiding bankruptcy was announced.
Ni muketa (aimed towards).
倒産は、地域経済に深刻な打撃を与えた。
The bankruptcy dealt a serious blow to the local economy.
Dageki wo ataeru (deal a blow).
民事再生法を適用し、倒産からの脱却を図る。
Apply the Civil Rehabilitation Act and aim to emerge from bankruptcy.
Wo hakaru (aim for/plan).
過剰な債務が、倒産の引き金となった。
Excessive debt became the trigger for the bankruptcy.
Hikigane (trigger).
倒産手続の透明性を確保することが求められている。
Ensuring the transparency of bankruptcy proceedings is required.
Kakuho suru (ensure/secure).
粉飾決算が発覚し、即座に倒産へと至った。
Window-dressing accounting was discovered, leading immediately to bankruptcy.
Funshoku kessan (accounting fraud).
倒産による連鎖的な信用不安が広がっている。
A chain-reaction credit crunch due to the bankruptcy is spreading.
Shinyō fuan (credit anxiety).
法的倒産と私的整理のどちらを選択すべきか検討する。
Consider whether to choose legal bankruptcy or private liquidation.
Shiteki seiri (private liquidation).
倒産隔離の仕組みを導入し、リスクを最小限に抑える。
Introduce a bankruptcy-remote mechanism to minimize risk.
Tōsan kakuri (bankruptcy remoteness).
倒産は、経営者の責任を問う契機となる。
Bankruptcy serves as an occasion to question the responsibility of management.
Keiki (opportunity/occasion).
当該企業の倒産は、マクロ経済的視点から見て不可避であった。
The bankruptcy of the company in question was inevitable from a macroeconomic perspective.
Fukahi (inevitable).
倒産法制の抜本的な改革が、市場の健全化には不可欠だ。
Drastic reform of the bankruptcy legal system is essential for market health.
Bapponteki (drastic/fundamental).
倒産手続における債権者間の利害調整は極めて困難を極める。
Adjusting interests among creditors in bankruptcy proceedings is extremely difficult.
Konnan wo kiwameru (extremely difficult).
ゾンビ企業の延命が、結果として大規模な倒産を招く恐れがある。
Prolonging the life of zombie companies may result in large-scale bankruptcies.
Osore ga aru (fear/risk that).
倒産確率の推計モデルを用いて、ポートフォリオを最適化する。
Optimize the portfolio using a bankruptcy probability estimation model.
Suikei moderu (estimation model).
クロスボーダー倒産における管轄権の競合が問題となっている。
Conflict of jurisdiction in cross-border insolvencies is becoming an issue.
Kankatsuken (jurisdiction).
倒産を契機とした産業構造の転換が、日本経済の課題である。
The shift in industrial structure triggered by bankruptcies is a challenge for the Japanese economy.
Sangyō kōzō (industrial structure).
倒産手続開始決定の公告が、官報に掲載された。
The public notice of the decision to commence bankruptcy proceedings was published in the official gazette.
Kanpō (Official Gazette).
Common Collocations
Common Phrases
Often Confused With
Idioms & Expressions
Easily Confused
Sentence Patterns
Word Family
Related
How to Use It
Carries a sense of 'failure' and 'debt'.
Usually companies/organizations, not people.
Tōsan is the broad category; Hasan is specifically liquidation.
- Using 倒産 for individuals.
- Using 倒産 for a shop closing for a holiday.
- Using 倒産 for a company that was bought out.
- Confusing 倒産 with 倒壊 (building collapse).
- Saying 'Tōsan wo shimashita' instead of 'Tōsan shimashita'.
Tips
Learn the Kanji
Focus on '倒' (fall) and '産' (industry). If you know 'taoreru', you already know half the word. It helps you remember the meaning of 'collapse'.
Use with 'Suru'
Remember it's a Suru-verb. 'Tōsan suru' is the most natural way to say 'to go bankrupt' in a formal setting. Don't forget the long 'o'.
Business News
Read the Nikkei or watch NHK News to see this word in action. It's almost always in the headline of economic failure stories. This builds context.
Legal Distinction
If you are in a law or accounting class, distinguish between 'Tōsan' and 'Hasan'. Hasan is the end; Tōsan can be a new beginning. This is a high-level distinction.
Politeness
Never use this word to describe a friend's small business struggles to their face. It's too harsh. Use 'keiei ga taihen' (management is tough) instead. Sensitivity is key.
Pitch Accent
The pitch is flat (Heiban). Don't stress any particular syllable. This makes you sound more like a native speaker during business presentations.
Compound Words
Learn compounds like 'Tōsan-kiki' (bankruptcy crisis). These are very common in headlines and save space while adding precision to your writing. It's very efficient.
News Keywords
When you hear 'Fusai' (debt) and 'Tōsan', you know the story is about a company failing. These two words are almost always paired together in reports.
Understand the Stigma
Realize that in Japan, 倒産 is a major social event. It affects the 'face' of the owners. Understanding this helps you interpret the tone of Japanese news.
Synonym Power
Learn 'Hatan' as a synonym. It's more versatile and can be used for things other than business. Having both 'Tōsan' and 'Hatan' makes your Japanese richer.
Memorize It
Mnemonic
Imagine a giant 'Industry' (産) building 'Falling' (倒) over because it's too heavy with debt.
Word Origin
Cultural Context
High. Bankruptcy can make it very difficult for an individual to start a new business or get a loan for years.
Extensive for large companies, often focusing on the impact on local employment.
Shift from liquidation (破産) to rehabilitation (民事再生) in recent decades.
Practice in Real Life
Real-World Contexts
Conversation Starters
"最近、倒産する会社が増えているそうですね。"
"あの有名なデパートが倒産したって聞きましたか？"
"倒産を避けるためには、何が一番大切だと思いますか？"
"もし自分の会社が倒産したら、どうしますか？"
"連鎖倒産を防ぐための政府の対策についてどう思いますか？"
Journal Prompts
Write about a time a local business you liked went bankrupt.
Discuss the pros and cons of government bailouts for failing companies.
How does the concept of 'failure' in business differ in your country vs Japan?
Describe the impact of a major company's bankruptcy on a small town.
Imagine you are a CEO trying to save your company from bankruptcy. What is your plan?
Frequently Asked Questions
10 questionsNo, it is almost exclusively for businesses. For a person, use '自己破産' (jiko hasan). Using 倒産 for a person sounds like you are calling them a company.
It means 'profitable bankruptcy.' It happens when a company has profit on paper but runs out of cash to pay immediate bills. It's a common risk for fast-growing companies.
Not necessarily. Under 'Civil Rehabilitation' (民事再生), a company can go through 倒産 procedures but continue to exist and operate after restructuring its debt.
There isn't one direct word, but '繁栄' (prosperity) or '再建' (reconstruction) are often used in contrast. '創立' (founding) is the beginning, while 倒産 is often the end.
You can use 'つぶれる' (tsubureru). For example: 'あの店、つぶれちゃったよ' (That shop went bust).
It is a 'chain-reaction bankruptcy.' It occurs when a large company fails, causing its smaller suppliers to also fail because they aren't paid.
Yes, it typically appears at the N3 level, but its usage in complex economic contexts is more common in N2 and N1.
Usually, yes (法的倒産). However, '私的整理' (private liquidation) can happen outside of court, but it is still often referred to as a form of 倒産.
In many cases, they are laid off (解雇). However, if the company is being restructured, some may keep their jobs under new management.
Because of the social stigma and the 'lifetime employment' culture. Failing in business is often seen as a failure of character or responsibility toward society.
Test Yourself 61 questions
/ 61 correct
Perfect score!
Summary
倒産 (Tōsan) is the formal term for business failure due to debt. It is a critical word for understanding Japanese economic news and corporate culture, distinguishing legal insolvency from simple closure.
- Refers to corporate bankruptcy/insolvency.
- Used for businesses, not individuals.
- Implies inability to pay debts (involuntary).
- Common in news and formal business contexts.
Learn the Kanji
Focus on '倒' (fall) and '産' (industry). If you know 'taoreru', you already know half the word. It helps you remember the meaning of 'collapse'.
Use with 'Suru'
Remember it's a Suru-verb. 'Tōsan suru' is the most natural way to say 'to go bankrupt' in a formal setting. Don't forget the long 'o'.
Business News
Read the Nikkei or watch NHK News to see this word in action. It's almost always in the headline of economic failure stories. This builds context.
Legal Distinction
If you are in a law or accounting class, distinguish between 'Tōsan' and 'Hasan'. Hasan is the end; Tōsan can be a new beginning. This is a high-level distinction.
Example
企業が倒産しました。
Related Content
Related Grammar Rules
More Business words
好況
A1A state of economic prosperity or a period where business conditions are favorable. It is used to describe a 'boom' where trade is active, consumption is high, and employment is stable.
経営
A1Management or administration of a business, shop, or organization. It refers to the strategic planning and day-to-day operation required to keep a business running successfully.
会社
A1A company, corporation, or business enterprise where people work to provide products or services. In a broader sense, it refers to the physical office or the organization itself.
競争
A1Kyousou refers to the act of competing or vying with others to achieve a goal, win a prize, or establish superiority. It is a versatile term used in sports, business, and academics to describe both structured contests and general rivalry.
信用
A1The act of trusting or relying on someone's character, abilities, or financial standing. It often implies a track record of reliability that allows others to believe in future actions or payments.
納品
A1The act of delivering goods or products to a client or customer as part of a business transaction. It specifically refers to handing over completed items that were previously ordered.
流通
A1The process by which goods, services, or money move from producers to consumers within an economy. It also refers to the circulation of information or currency throughout a society.
景気
A1Refers to the state of the economy or business conditions, describing whether the market is active or sluggish. It can also describe the overall energy or liveliness of a specific place or situation.
雇用
A1Koyō refers to the formal act of employing or hiring a person to perform work in exchange for payment. It describes the legal or professional relationship between an employer and an employee.
企業
A1A business organization, enterprise, or corporation that engages in economic activities to produce goods or services for profit. It is a formal term often used when discussing business entities in economic, legal, or professional contexts.
