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 …

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 …