This research investigates how bankruptcy law influences the design of debt contracts and the investment choice through … sanctions are implemented in case of costly bankruptcy only. This way of resolving financial distress can be avoided yet, if a … private agreement is achieved. First, – when sanctions are high – we show that costly bankruptcy may be preferred by honest …

In this paper, we develop a normative theory of unsecured consumer credit and personal bankruptcy based on the optimal … unsecured debts in bankruptcy. The structure of this equilibrium and the associated restrictions on debt discharge closely match … the main qualitative features of personal credit markets and bankruptcy law that actually exist in the United States. …

personal bankruptcy to obtain insurance. Taxes are levied to fund government expenditures. An optimal tax system consists of …

This paper studies the bankruptcy of USA banks since 2009. It first analyzes the financial symptoms that precede … bankruptcy, such as low profitability, insufficient revenue, or low solvency ratios. It also goes into the causes of these … a path modeling to bankruptcy based on structural equations, hypotheses tests and logistic regression. Results show that …

) rising bankruptcy rates and discharge in bankruptcy, (4) rising dispersion in interest rates across households, and (5) the …

By compiling a novel dataset from bankruptcy court dockets recorded in Delaware between 2001 and 2002, we build and … estimate a structural model of Chapter 13 bankruptcy. This allows us to quantify how key debtor characteristics, including … whether they are experiencing bankruptcy for the first time, their past due secured debt at the time of filing, and income in …

The 1990's witnessed a historically unprecedented number of personal bankruptcy filings. In response, congressional … debate over bankruptcy law has recently led to several proposals aimed at making it more difficult to exempt wealth in … bankruptcy. In this paper, I evaluate uniform exemption policy primarily within the context of the recent congressional proposal …

In U.S. data, income interruptions, the receipt of public insurance, and the incidence of personal bankruptcy are all … closely related. The central contribution of this paper is to evaluate both bankruptcy protection and public insurance in a … delivers two striking conclusions. First, we find that U.S. personal bankruptcy law is an important barrier to allowing the …