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The appropriate content of bankruptcy law has become the most hotly debated area of corporate law. The past few years have witnessed a rush of bankruptcy scholars trying to devise new legal regimes for dealing with firms in financial distress. A broad array of scholars have concluded that there are substantial problems with the existing corporate reorganization provision of the Bankruptcy Code, Chapter 11, and a number of proposals have been made in response to these problems. These proposals range from substantial tinkering with existing bankruptcy law'to wholesale abandonment of any type of federal bankruptcy law. 2 The more modest proposals include a special provision designed for smaller firms, while the more radical suggestions include having the bankruptcy court auction off companies, eliminating federal bankruptcy law in its entirety, and allowing firms at the time they incorporate to select from a …