A Bankruptcy Liquidation Model

As a competitive mechanism of only the fittest survives, bankruptcy is a common business phenomenon. Allocation of bankruptcy property is an issue of concern to many scholars. Bankruptcy liquidation models are often deficient. In this paper, based on complete information of creditors' claims, their maximum expectation and minimum requirements, creditors' utility functions are improved. Utility functions are the keys of allocation rules. The liquidation model constructed in this paper provides the specific bankruptcy problems only a unique distribution result. The result is stable, every creditor are equal at satisfaction degree. That is to say, the allocation rule is impartial