Official Monopoly Rules on Bankruptcy

Paying Back Players

• A player is declared bankrupt when the amount owed is more than the amount the player can pay back. When a player owes another player money but cannot pay it, the player declaring bankruptcy must turn over everything of value to the player owed. This means trading in any properties, houses and hotels to the bank for half their cash value. Once the properties have been sold off, the player in debt gives this cash to the player owed.

Paying Back the Bank

• If the bank is owed money as opposed to a player, the player in debt must sell off properties. The money from this remains in control of the bank. However, the properties owned by the player are then auctioned off to the remaining players. However, hotels and houses are not auctioned.

Mortgaged Property

• If a player declaring bankruptcy has mortgaged property in their possession, the property must be turned over to either the player owed or the bank. The player owed then pays off 10 percent of the property's value, which covers the interest on the loan. The player newly in possession of the property can either pay for the property or hold it and lift the property later on.

Forfeiting the Game

• After a player has sold off possessions within the game, that player is immediately out of the game. They may no longer purchase any property or participate in game play. Eventually, more and more players will declare bankruptcy in the game. The game ends when only one player is left who hasn't either forfeited or declared bankruptcy.