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Does the bankruptcy filing mean Chrysler is going out of business?

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Does the bankruptcy filing mean Chrysler is going out of business?

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No. Many companies file for Chapter 11 to cut costs or restructure their operations while the court keeps creditors at bay. That is what Chrysler is attempting to do — use the bankruptcy laws to get rid of some liabilities then exit court protection. President Barack Obama said the bankruptcy will give Chrysler time to finalize a deal with the Italian carmaker Fiat Group SpA, in an effort to revive the nation’s third-largest automaker. Companies that are clearly going out of business normally file for a different type of bankruptcy known as Chapter 7. Q: Is this the same type of bankruptcy that businesses usually file for? A: Many businesses that enter bankruptcy do file for Chapter 11 so, yes, it’s the same type. On the other hand, some businesses will file a Chapter 11 even when they are liquidating assets — which is to say, unloading all of their stuff, and going out of business. Doing so gives them more control over the liquidation. But that does not appear to be the case here, s

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