The aim of this paper is to provide for a comprehensive view of bankruptcy law. We start by analyzing in detail the previous literature, presenting recent studies that have tried to overcome some of the drawbacks and end by suggesting methodology that could lead to improve these studies. Indeed, to study the efficiency of bankruptcy law requires not only looking into the legislation of various countries but also the quality of its enforcement as “for similar firms filing for bankruptcy in different countries, we could expect different outcomes for creditors depending on the level of creditor protection provided by bankruptcy code”, Davydenko and Franks (2007). In globalized economy it’s imperative for corporations to have an understanding of the dynamics of bankruptcy procedures not only to protect themselves from pursuing creditors, but to revive out of financial distress and to sustain in changing environment.