But if a company goes under because of bankruptcy it is obviously not meant to be. Somebody should have made better business decisions to prevent that from happening. I mean look at it from a general stand point. If I was to claim bankruptcy should the government come bail me out because I made stupid decisions with my money. I mean hookers and blow are not necessarily stupid decisions, but you get the idea. Just how much money should the government fork out to people that have obviously made poor life choices?
If a company goes under, it is due to insolvency. Bankruptcy is the legal process that they use to protect themselves from their creditors. And unfortunately, if you or I made a series of bad decisions that led to insolvency, a bankruptcy bail out is exactly what you could get.
It used to be that people avoided bankruptcy because they would be branded with a Scarlett Letter for years. These days, lenders will turn around and lend them money again within a couple of years.
