The media throws around the term Chapter 11 a lot to discuss bankruptcy and what General Motors will go through starting today. See the Wiki for a good snapshot of Chapter 11 filings. Click here.
True bankruptcy is usually in Chapter 7 where a company is liquidated. Boom. Done. It is over.
Chapter 11 is now being positioned as a big mulligan in the sky - a big reboot - a big whoops, sorry - let us start over – for big companies. This is very troubling to me. Chapter 11 is usually a bad thing for a company but now it is starting to be looked at as a good thing and that is a terrible thing.