(Law) An act of a debtor which renders him liable to be adjudged a bankrupt. Under older Bankruptcy Acts. An act which subjects a person to be involuntarily proceeded against as a bankrupt. The acts of bankruptcy are enumerated in the older Bankruptcy Acts. Some of which are: 1. Departure from the state, district, or territory of which a person, subject to the operation of the bankrupt laws, is an inhabitant, with intent to defraud his creditors. 2. Concealment to avoid being arrested. 3. Willingly or fraudulently procuring himself to be arrested, or his goods and chattels, lands, or tenements to be attached, sequestered, or taken in execution. 4. Removal of his goods, chattels and effects, or concealment of them to prevent their being levied upon, or taken in execution, or by other process. 5. Making any fraudulent conveyance, assignment, sale, gift, or other transfer of his lands, tenements, goods, or chattels, credits, or evidences of debt. Modern statutes no longer take this position and provide for involuntary bankruptcy. The 1978 Bankruptcy Reform Act abolished this requirement for an involuntary bankruptcy proceeding.