This paper presents new evidence on the importance of insolvency frameworks for private sector debt deleveraging and … for the resolution of non-performing loans (NPL). We construct an aggregate insolvency framework index (IFI), which is …, our results indicate that better insolvency frameworks lead to faster NPL reductions and to lower NPL increases during …

, especially, the financial cost of filing for bankruptcy. We study the effects of the reform on bankruptcy, insolvency, and …. We find that the decline in bankruptcy filings resulted in a rise in the rate and persistence of insolvency as well as an … that insolvency is associated with worse financial outcomes than bankruptcy, as insolvent individuals have less access to …