This thread is inspired by tonight's (1/17/13) episode of Grey's Anatomy, so I'm going to pose some questions and I'm not going to conceal them in spoiler tags. IF YOU DON'T WANT GREY'S ANATOMY SPOILERS, DO NOT READ! OK, here goes: Five doctors sue the hospital and win a $75 million settlement. The insurance company finds a loophole and doesn't have to cover the loss. The hospital has to pay but doesn't have the money. So it decides to declare bankruptcy and close its doors. Is this something that happens in the real world? Is this something covered by federal law or state law? Which Chapter covers a for-profit hospital's bankruptcy? Where does the winner of the lawsuit stand among the creditors? At the top? At the bottom? Can the bankruptcy court reduce the winning plaintiff's settlement to pennies on the dollar?