GM May Be Saved By Bankruptcy

The Obama administration has recently urged General Motors to consider bankruptcy. GM is carrying too many bad assets on its books and is heavily in debt. A Chapter 11 bankruptcy will allow GM to stop its downward spiral and restructure its assets so that the new restructured company can survive. This is similar to what many individuals are now doing under Chapter 13, only on a much smaller scale. What is good for the goose is good for the gander. Our government knows very well that bankruptcy is not an end, but a means to an end, and that end is a fresh start. If GM is permitted to restructure it’s debts under bankruptcy laws, then individuals should have no shame in doing the same.