This week Delphi Corp., the nation's largest auto supplier, filed for bankruptcy protection as the costs to operate -- including labor, health insurance and pension benefits -- became too burdensome. The company makes almost every part you'll find on a car, from brakes to satellite radio receivers, and yet still lost millions of dollars over the last three years.

For similar reasons Delta Airlines and Northwest Airlines, two major companies in the airline industry, also recently sought bankruptcy protection, leaving customers to wonder whether their tickets and frequent-flyer miles would be honored.

On October 17 the rules for bankruptcy will change, making it harder for companies to take this path out of debt. As a result, a flood of bankruptcies from troubled industries, large and small, is expected before that deadline.

What does bankruptcy mean? A company that files for bankruptcy protection is out of money in a sense, but its filing in court allows it to continue to operate while it works out internal financial problems and adjusts its costs, usually by eliminating staff, reducing benefits, or perhaps changing the way it does business. During a Chapter 11 filing, the company is protected from being sued by its creditors--those to whom the bankrupt company owes money. Bankrupt companies sometimes emerge from their Chapter 11 status, returning to profitable or at least financially stable business operations.

Competition and other factors: The bankruptcies of Delta and Northwest demonstrated the seriousness of the financial problems in the airline industry. While the high costs associated with running a business--health insurance costs, pension payments, fuel costs--are partly to blame, other factors that probably contributed to Northwest and Delta's filing include the appearance of smaller, but more competitively priced, airline companies; the attacks of September 11, 2001 that caused many people to consider alternatives to flying; and, for those who did continue to fly, the use of the Internet to find bargain fares.

Where did the money go? Virtually all companies face financial difficulty in the area of providing health insurance for its employees. Another difficult area includes pension payments, the money that companies pay to employees who are retired. Delphi, in particular, sited the costs associated with union contracts as the reason for its financial crisis.

Why should companies get help? When two or more companies compete against each other for business, the consumer can choose which between them based on which best serves his needs and which has the lowest price. Should a company like Delphi get help to stay in business if it can't compete with another company that is able to do the same job for less money? But what happens to employees of that company who have families and mortgages and car payments and other expenses? And what about retirees who worked all their lives with a company promise they would get benefits when their careers are over? Are we helping the company or the employees who will get hurt if the company goes out of business?

What can workers do to protect themselves? People in troubled industries need to plan for the worst. Start saving money before the crisis in order to build up a cushion to help you get by without a pay check for at least a few months. Cut expenses to just the necessiities. Look for jobs at other companies while you still have a job. Further your education to make yourself more valuable to companies.