BUS 602 CLA1 Competitive Analysis Le Yang Westcliff University Abstract The report is about basic knowledge of bankruptcy of United States. It includes introduction of major types of bankruptcy, as well as the purpose and procedures of these types. There is some explanation of what will happened during bankruptcy. Also, writer has some suggestions to debtors and creditors. At the end, writer has placed some example of companies filed bankruptcy. Keywords: bankruptcy, law According to United State Courts, Bankruptcy can “help people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses” (2017). It usually starts with “the …show more content…
And chapter 11 is for reorganizing the business. It helps corporations to rebalance their income and expense then continue the operation. After approved chapter 11, the company can prepare for the reorganization which means “A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed” (U.S. Court, 2017). For example, the United Airlines claim chapter 11 bankruptcy on 2002 with $1 billion debts. Daily mail reported that “United confirmed it arranged with a group of banks for $1.5 billion in financing to see it through bankruptcy. At the final hour, GE Capital pulled out of the group of lenders and was replaced by CIT Group (2016). At February 2006, they ended the bankruptcy. The reasons of their bankruptcy were:” low-fare competition and a drop-off in air travel after the Sept. 11, 2001, terrorist attacks on the United States” (LA Times, 2006). During the three years, they tried to reduce costs, changing their strategy to win more market