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European Countries Recently Updated Their Bankruptcy Laws Based on the U. S. Bankruptcy Code

The Wall Street Journal in its April 6-7, 2013 issue reported that multiple European countries recently updated their bankruptcy laws with business bankruptcy law revisions modeled on American Chapter 11 bankruptcy.  According to the article by Deborah Ball, the recent mass of financially troubled businesses in European countries drew attention to the shortcomings of the bankruptcy laws in those countries.  Ball cited reports that in 2012 in Italy 100,000 businesses closed.  Chapter 11 bankruptcy in the United States enable many companies to successfully reorganize, reduce debt repayment, and continue operating.  The Chapter 11 bankruptcies of General Motors Corporation and Chrysler, LLC are but two instances of corporation using the United States bankruptcy laws to revitalize the company and prevent the company's demise. 
 
Deborah Ball reported that France, Germany, Italy, and Spain have all modified their bankruptcy laws using United States Chapter 11 bankruptcy as a model for their new bankruptcy laws.  One important objective of the new European bankruptcy laws is to save the jobs of employees of financially distressed companies.  Chapter 11 bankruptcy in the United States has long allowed struggling companies to remain operative, thus saving employees' jobs. 
 
Previous, archaic, European bankruptcy laws sometimes prevented entrepreneurs who filed a business bankruptcy case from starting a new business in the future according to the WSJ article.  American bankruptcy laws have long facilitated entrepreneurship by letting financially burdened business people obtain the opportunity to get freedom from debts which prevented further business activities.  Walt Disney and Donald Trump are just two examples of hugely successful business titans who used bankruptcy to enable them to develop and grow hugely lucrative businesses. 

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