U.S. President Barack Obama's administration has told General Motors Corp. (GM) to "address" bankruptcy as a possibility in a viability plan due to the government Tuesday, Rep. Sander Levin, D-Mich., said Monday. "They've been asked to address the issue of bankruptcy in their plan but not to have that as an alternative plan," Levin said in a phone interview. "That's my understanding."

He said he learned of the administration's request from a "very, very good source" but declined to elaborate.

Levin said he and other industry supporters in Congress maintain that a bankruptcy filing by a domestic auto maker would be disastrous to both the auto industry and the broader economy.

The plan that GM is scheduled to submit to the Treasury Department on Tuesday is supposed to describe how the company will restructure to ensure its long-term viability.

GM and Detroit rival Chrysler LLC have received the first installment of a combined $17.4 billion in government loans and could receive the next installment if their plans pass muster.

A GM spokesman declined comment.

-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com