The subject of corporate bankruptcy has been of interest to financial academicians and practitioners alike. Researchers have directed most of their attention to accounting-based models for predicting bankruptcy filings. Although some research has attempted to estimate the probability and costs of bankruptcy, a very limited amount is centered around the outcome of bankruptcy proceedings. Specifically, little is known about the circumstances that determine whether the firm will liquidate, successfully reorganize, or become an acquisition of another firm after filing for court protection. Given the potentially large losses to both creditors and stockholders, the determinants of bankruptcy outcome should be of considerable interest. The focus of this research is threefold. First, the factors that should have an effect on the disposition of the firm after the bankruptcy filing are examined for their influence on the disposition. Second, since there is some dispute as to the appropriate classification of acquired firms, the correct classification of acquired (or merged) firms is determined. Third, the effect of a major change in the bankruptcy law is examined.