Chrysler LLC reportedly retained bankruptcy law firm Jones Day, according to sources talking to The Wall Street Journal.

If true, the hiring suggests that privately held Chrysler is preparing to file bankruptcy if it does not get aid from Congress.

Chrysler is seeking a $7 billion bridge loan from U.S. taxpayers.

Jones Day declined to comment on the story, and Chrysler wasn't available to confirm the story, the Journal reported.

Bloomberg reported previously that both General Motors Corp and Chrysler were considering pre-arranged bankruptcy in a bid to secure billions in bailout financing.

A so-called "pre-pack" bankruptcy — negotiated in advance with with workers, creditors and lenders — would be faster and easier than traditional bankruptcy.

Private equity firm Cerberus purchased 80.1 percent of Chrysler last year from Daimler in a $7.4 billion deal.