When a person declares bankruptcy do they just die?

So why do people think that when a business declares bankruptcy they die? Bankruptcy is a tool used by people and corporations to renegotiate and restructure debt. Why shouldn't GM and Chrysler have gone through the legal avenues available to them to restructure their debt and renegotiate contracts? ... show more So why do people think that when a business declares bankruptcy they die?

Bankruptcy is a tool used by people and corporations to renegotiate and restructure debt. Why shouldn't GM and Chrysler have gone through the legal avenues available to them to restructure their debt and renegotiate contracts? It's not like they'd be going out of business.

Is this whole bankruptcy scare tactic by the Obama administration simply preying on people's ignorance?
Update: ""Here are the facts: if Mitt Romney had had his way and we'd let Detroit go bankrupt, GM and Chrysler would no longer be in business today. He would raise taxes on middle class families to pay for tax breaks for millionaires and billionaires," said Obama campaign spokeswoman Lis... show more ""Here are the facts: if Mitt Romney had had his way and we'd let Detroit go bankrupt, GM and Chrysler would no longer be in business today. He would raise taxes on middle class families to pay for tax breaks for millionaires and billionaires," said Obama campaign spokeswoman Lis Smith."

http://news.yahoo.com/romney-says-obama-...
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