Unless the price drop is far more drastic than what we see today, I would expect sell-offs and mergers rather than much Bankruptcy.
There are many with strong financial positions that would buy the assets at reduced prices.
This price fall will be a godsend for Exxon and Chevron, two companies that can’t replace their usage currently with new finds. We used to have a saying on Wall Street decades ago that the best place for them to drill for oil was in the market.
If prices stay here look for both of them to start to at least provide working capital in joint agreements in exchange for a percentage of the production or even outright takeovers. Someone like Chesapeake, given how much they have cleaned up their balance sheet and their production costs, would look very attractive to either of them at these price levels.
Remember, to a major oil company, these assets, being in America, carry a political safety that many other places to drill do not.
I guess that is true, there are a ton of properties for sale so those who can off load enough properties to reduce their overhead debt costs will not go away. Those who cannot, well, I expect few actual chapter 7s, more like chapter 11s where the equity holders get wiped out.