This study empirically analyses the effect that the bankruptcy law has on firms’ performance based on its financial situation. To do this, we considered the different types of efficiency and their influence on firms’ value. The study was carried out for Germany, Spain, the United States, France and the United Kingdom. We applied System-GMM estimation to dynamic panel data. The main results show that under creditor-oriented systems, there is a decrease in the value of both financially distressed firms and those filing for bankruptcy.