What it means
ورشکست (varshekast) is a genuinely Persian formation built from “var” (a prefix intensifying the following word) and “shekast” (شکست, meaning defeat or breakage), the past stem of شکستن (to break). Together they convey something utterly broken, specifically financially. The word functions as both an adjective and a noun: someone can be ورشکست (bankrupt) or a company can go ورشکست شدن. The related abstract noun is ورشکستگی (varshekastegi, the state of bankruptcy). In formal legal writing you may also see افلاس (eflâs), which is the Arabic-origin term, but ورشکست is the everyday word.
How to use it
- شرکتشون ورشکست شد. (sherkat-eshun varshekast shod.) “Their company went bankrupt.”
- بعد از اون سرمایهگذاری ورشکست شدم. (ba’d az un sarmâyegozâri varshekast shodam.) “After that investment I went bankrupt.”
- دولت اجازه نداد بانک ورشکست بشه. (dowlat ejâze nadâd bânk varshekast beshe.) “The government did not allow the bank to go bankrupt.”
- مغازهاش ورشکسته. (maghâze-ash varshekaste.) “His shop is bankrupt.”
Cultural note
In Iranian commercial law, ورشکستگی (varshekastegi) is a defined legal status governed by the Commercial Code. A declared ورشکست business loses control of its assets to a court-appointed administrator until creditors are settled. Outside the legal system, the word carries significant social stigma: for small business owners and bazaar merchants, being known as ورشکست can affect family reputation and future credit within the community for years.