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 …

) 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 …

Because of the recent surge in U.S. personal defaults, Congress is currently debating bankruptcy reform legislation … previous work, bankruptcy options and production are explicitly taken into account. Our findings indicate that means testing … would not improve upon current bankruptcy provisions and, at best, leaves aggregate filings, output, and welfare unchanged …

significant effect on the bankruptcy rate. Additionally, a drop in information costs generates changes in other variables (e …