Auto lenders were perhaps the biggest winners of the 2005 Bankruptcy Reform. Cars depreciate quickly, so borrowers … to the market value of the car through a "cramdown" in Chapter 13 bankruptcy. The Reform prohibited cramdowns during the … eliminating cramdowns affected only one of the two types of consumer bankruptcy: Chapter 13. They exploit persistent historical …

employees, we analyze plant-level employment patterns before bankruptcy, plant closure without bankruptcy, and mass layoff … bankruptcy. Our analysis of worker flows underlines that bankruptcies seem to struggle for survival while closures follow a … largest for closures without bankruptcy. …

This paper studies the optimal determination of bankruptcy exemptions for risk averse borrowers who use unsecured … sufficient to determine whether a bankruptcy exemption level is optimal, or should be increased or decreased. These variables are …' leverage, the borrowers' bankruptcy probability, and the change in bankrupt borrowers' consumption. An application of the …