The largest US automaker General Motors Corp. filed for Chapter 11 bankruptcy on Monday, and a Detroit News report on gave some questions and answers on the automakers' bankruptcy on the same day.

Q: Why is General Motors Corp. filing for bankruptcy?

A: GM has lost US$88 billion since 2005 and used more cash last year than it generated through vehicle and asset sales. Unable to borrow money from the private sector because of the severe global credit crunch, GM asked the US government last fall for emergency loans to stay in business, as did its ailing crosstown rival Chrysler LLC.

The government has provided GM with more than US$20 billion in loans but that wasn't enough to keep the automaker going as a viable business unless it slashed its debts and obligations.

Q: What will a GM bankruptcy look like?

A: GM will file under Chapter 11 of the US bankruptcy code, which allows a company to seek court approval to halt certain payments and cancel unprofitable contracts and leases while it continues to operate its business.

Chapter 11 is designed to provide a "breathing spell" during which a company can reorganize its operations to emerge as a potentially successful firm.

In a Chapter 11 bankruptcy, a company does not go out of business, and its management is not necessarily replaced.

There are other forms of bankruptcy under US law. For instance, if a firm is unable to reorganize its operations to become a viable concern, it goes into a Chapter 7 bankruptcy, where its assets are liquidated to repay creditors, starting with banks and other secured creditors.

Q: For how long will GM be in bankruptcy?

A: GM and the U.S. government are hoping for a brief bankruptcy lasting between 60 and 90 days. Some bankruptcy experts call that optimistic. GM's onetime components subsidiary, Delphi Corp., has been in bankruptcy for nearly four years.

But Chrysler moved surprisingly fast through bankruptcy after filing in a New York court on April 30. A new company comprising Chrysler's valuable assets emerged from the bankruptcy process Sunday after a court approved the sale of the assets.