Yes, BANKRUPTCY is a Scrabble word!

Letter values in Scrabble US: B 3, A 1, N 1, K 5, R 1, U 1, P 3, T 1, C 3, Y 4.

Is it a valid word?

BANKRUPTCY is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

a state of complete lack of some abstract property
inability to discharge all your debts as they come due
a legal process intended to insure equality among the creditors of a corporation declared to be insolvent