The following changes are effect 20 June 2015 ...

The set of things that happen during bankruptcy has been an issue of controversy, especially for some owners who occasionally find themselves in this difficult situation. In general, the complaint has been that the penalty of losing all one's players is too stiff, requiring several seasons of rebuilding. Of particular concern to owners is the encumbrance endured the very next season, wherein all personnel prior to the draft consist of leftovers from the last draft, ensuring medocrity. Thus, the following changes:

1. Personnel Retention

In the bankruptcy routine, your batting and pitching rosters will now be evaluated to determine the highest rankings (always based on the current official rankings database, which may not always match the rankings shown in your software because rankings updates appear only periodically). Both the highest ranked batter and the highest ranked pitcher will be retained. All remaining personnel will be replenished just as before.  

Note: the bankruptcy routine does NOT assess contract status, so it is possible that the personnel retained will have only 1 remaining season.  

2. Draft Seeding

Previously, bankrupted teams moved automatically to the lowest seed in the draft. Effective now, bankrupted teams will not be allowed to sink below the lowest position occupied by non-playoff teams, e.g., in a league of 24 teams that would mean a bankrupted team would be given the 18th pick instead of the 24th pick. (picks 19-24 are always reserved for playoff contenders). There is a notable exception, however. If a bankrupted team made the playoffs in the season just passed, that team will retain its position among the lowest 6 seeds.  In no case will a bankrupted franchise enjoy a higher seeding than if it had not entered bankruptcy.