France was declared bankrupt in 1788.
Louis XIV had made huge state debts by building the Versailles palace and declaring wars (especially with Austria and England) which cost too much money. When Louis XV entered the throne, there was a state debt of 400 million livres, and he couldn't repay the debts. He tried to though, by making the French pay taxes (everybody had too, except the clergy and nobility).
It wasn't enough, and when Louis XVI succeeded him all he could do is raise the taxes and hope for the best. It didn't work out, and France went bankrupt.
* France had spent allot of funds helping the American Revolution.
4000 million lives in debt.France had spent a lot of money fighting costly wars, but had nothing to show for it. Many people accused the royals, especially Queen Marie- Antoinette of spending too much money on luxuries.
