Chapter 11-style bankruptcy protection would hurt the economy
By Eamonn Butler (July 16 2008)  Cameron's "Chapter 11" idea
seems to have come from a list of weekly headline-grabbers
rather than through a long think-tanking process.  Still, with
the UK economy heading south, its timing is perfect.  The idea
of Chapter 11, which refers to a section of the United States
Bankruptcy Code, is that individuals and firms can stave off
bankruptcy and keep control of their assets while they
reorganise themselves out. Individuals must agree to debt
counselling and a repayment schedule. Businesses have to state
all their financial information and file a recovery plan.  Does
it work? Well, some of the highest-profile Chapter 11
beneficiaries have been America's airlines, including Northwest
and Delta (which went on to merge), ATA (which eventually
failed), US Airways (limping along) and United (still in huge
debt).  It might have prevented the sudden shock of bankruptcy,
but what eventually happened is probably what woul