In the modern economy, bankruptcy of businesses is a daily occurrence. In this final paper has been elaborated the concept of bankruptcy and key terms which are closely related to the previously mentioned, such as the reasons and ways in which bankruptcy procedure is initiated as well as the economic aspects and consequences that it necessarily leads to. Particularly important in the continuity of business operations are the achievements in financial performance and their financial position. Management is required to continually monitor business performance in order to avoid bankruptcy and its consequences, which are large for creditors as well as the wider community and national economy. The studies presented in the paper refer to a period that lasted 3 years, that is, year 2016, 2017 and 2018. The analyses show a slight increase in the number of initiated bankruptcies from year to year. Three activities remain most present for each year and these are Construction, Wholesale and retail trade, Repair of motor vehicles and motorcycles and Manufacturing which make up over 60% of all bankruptcy cases.