At law school, one of the first rules of interpretation taught is that the ordinary meaning of the word should apply. At least, the first natural instinct should be an ordinary reading of the word or term. I do not mean literal in the translation sense of word for word, but that plain and ordinary meanings should be considered first.
http://www.helpwithlawexams.co.uk/statutoryinterpretation.ht...
For the case in point, this works. "Default" or similar works to my mind without any problem. I see no justification for reading "bankruptcy" into this word in the extract provided. As for elsewhere, without context, who knows. Note that "faillite" and "défaillance" are close, in context, default and bankruptcy may well be part of the same discussion but are not synonymous.
The translation workplace 
peer agreement (net): -1
