Should business bankruptcy be a one-chapter book?

From: Credit & Financial Management Review | Date: July 1, 2003| Author: | Copyright information

Abstract

What makes more economic sense? A bankruptcy system that auctions a firm 's assets and distributes the proceeds among the creditors, or one that allows a firm to seek to resume business after renegotiations between its stockholders and its creditors? Or is there room - or even a need-for both? This article outlines current U.S. bankruptcy law and looks at recent research that has reopened the debate on the value of separate procedures for reorganizing the bankrupt firm.

Chapter 7 and Chapter 11

Businesses sometimes go bankrupt. That's a fact of life. Bankruptcy may occur because of ...

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