Will There be a BP Bankruptcy? This is the question mostly asked by investors as fear looms over a possible bankruptcy declaration by British Petroleum or BP. Since the onset of the oil spill, BP has shed tremendous amount of its shares as the costs of oil spill claims rise. In addition, BP’s credit rating has been downgraded as an effect of the oil spill.

With so much loss in BP’s balance sheet, BP may probably declare a possible bankruptcy. This is the speculation among analysts in Wall Street amidst the falling shares of most energy stocks including BP and Anadarko Petroleum Corp.

The news started when a signal from a news report that quoted an analyst as saying BP could be forced to seek bankruptcy protection in about a month because of the oil spill. Analysts also said there were concerns that the company might have trouble paying its dividend.

Will there be a BP bankruptcy? It is too early to tell. I remember BP’s CEO Tony Hayward as saying that BP’s balance sheet is strong enough to handle the oil spill. The question now lies up until when can BP hold the large costs of the oil spill. BP must contain and stop the oil spill immediately before its finances get exhausted in paying oil spill claims and injuries eventually leading to a bankruptcy.