revising Chapter 11 have raised the possibility that the Canadian reorganization system might be a good alternative to the …-supervised reorganization. Canadian evidence shows that acceptance, confirmation, and consummation rates of proposals are very high. Moreover …, firms reorganizing in Canada are almost ten times more likely to survive reorganization than their American counterparts …

Bankruptcy is the legal process whereby financially distressed firms, individuals, and occasionally governments resolve … their debts. The bankruptcy process for firms plays a central role in economics, because competition drives inefficient … corporate bankruptcy is to reduce the cost of default by having a government-sponsored procedure that resolves all debts …