Is it ethical for businesses to file for bankruptcy

Is it Ethical for a Business to File a Bankruptcy?
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Is it Ethical for Business to File a Bankruptcy?
Article; Boettcher, J., Cavanagh, G., & Xu, M. (2014). Ethical Issues that arise in Bankruptcy. Business & Society Review (00453609), 119(4), 473-496. doi:10.1111/basr.12042
Bankruptcy is a procedure, which is legal for dealing with business, and individuals facing unmanageable debts. The article describes bankruptcy as an efficient option compared to liquidation during financial failures. In addition, the firm in debt gets another economic chance in life after bankruptcy. The article further describes new opportunity can be utilized by a formation of a reorganization plan of the firm in bankruptcy (Boettcher, Cavanagh,& Xu, 2014). The plan should be equitable and fair to serve shareholders, employees, community, and creditor’s best interest.
The topic shares the same view to the article as it is ethical for a firm to go for bankruptcy when faced with insolvency. From the article, bankruptcy is an ethical system itself, which goes in hand with the topic of the study. The article brings out the importance of bankruptcy, for instance, the company to be granted another opportunity for a new life, new business, and new products. The new opportunity for business is ethically making it clear that it is ethical for a firm to go for bankruptcy rather than liquidation.
In my opinion, it is ethical for the business to file bankruptcy. First, the corporation facing unmanageable financial failure going into bankruptcy will get another chance to start a new economic life compared to other older process.

For instance, it is ethical and efficient for the corporation to for a fair and equitable reorganization to save the communities, suppliers and people’s jobs who depended on it. Consequently, in chapter 11 of the article, the corporation has to use its assets efficiently in a less disruptive way for the benefit of its stakeholders and shareholders. Thus, bankruptcy professionals and judges task are to balance all stakeholders’ interests and contributions in bankruptcy proceedings. Judges will analyze the case thoroughly to bring less harm and protect stakeholders’ benefits. 
Reference
Boettcher, J., Cavanagh, G., & Xu, M. (2014). Ethical Issues that arise in Bankruptcy. Business & Society Review (00453609), 119(4), 473-496. doi:10.1111/basr.12042