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Discover LudwigThe phrase "declare bankruptcy" is correct and usable in written English.
It is typically used to describe a situation when a company or person is unable to pay their creditors and owes more money than they can afford to pay back. For example: "When their business failed, the owners had to declare bankruptcy."
Exact(60)
The firm was forced to declare bankruptcy.
4. Borders bookstores may declare bankruptcy.
Unlike a city it cannot declare bankruptcy.
Nor can they easily declare bankruptcy.
To declare bankruptcy next month: Blockbuster.
He was finally forced to declare bankruptcy.
But those creditors cannot declare bankruptcy again.
Individuals and corporations can declare bankruptcy.
(Puerto Rican cities can't declare bankruptcy, either).
New York City was about to declare bankruptcy.
The firm had to declare bankruptcy and fire its managers.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com