New York - US President Barack Obama wants a speedy bankruptcy for General Motors after the documents were filed Monday in a New York bankruptcy court.

Its smaller rival, Chrysler, already started down a separate path to insolvency a month ago, with expectations of emerging soon after a judge backed its reorganization plan Monday.

Here's a guide through the process:

How can bankruptcy rescue GM?

In US bankruptcy court, US companies can continue to function while seeking protection from creditors, dumping weighty ballast and restructuring for more efficiency. The problem with this version of US bankruptcy under Chapter 11 (as compared to Chapter 7, which provides a speedier but more final liquidation) is that it can drag over months and years. GM doesn't have the time for this.

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What is "speedy" bankruptcy?

There is no such formal designation in US law. But the Obama administration has called for a quick process that lasts 60 to 90 days at the most. One administration official called it a "quick rinse bankruptcy," in which the entire framework of agreements about debt forgiveness, compromises by the unions, details of the new owners, are laid before the bankruptcy judge. GM has already ironed out many of the discrepancies with the parties involved.

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What's the process?

The goal is a speedy takeover of the carmaker, relieved of its 27- billion-dollar debt burden by creditors, by an alliance of the US and Canadian governments, the auto workers union and bondholders. The good will be separated from the bad. The viable core of the company with the Chevrolet and Cadillac brands is to emerge quickly from insolvency. It is hoped that other brands - Hummer, Saturn and Saab - are to be sold. Pontiac will be buried. But there's still no guarantee of success for the leaner, meaner new GM.

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What's needed to accomplish this?

A lot of money. The US government has already pumped in 20 billion dollars and will inject another 30 billion dollars during and after the bankruptcy court process.

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What's the biggest hurdle?

Creditors want 27 billion dollars. They balked at the offer of 10 per cent of the new GM in exchange for forgiveness, and finally a majority relented on Sunday when the promise was sweetened by the possibility of owning another 15 per cent at a later stage. But a smaller group of bondholders is still vowing to block the deal.

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What happens if the bankruptcy application is rejected?

A domino effect: In addition to GM, there are thousands of suppliers, dealers and other interdependent firms which face collapse. Analysts project that a failed bankruptcy could cost hundreds of thousands or even a million jobs worldwide. (dpa)