Lehnert, Andreas; Maki, Dean M. - Federal Reserve Board (Board of Governors of the … - 2002
Consumer bankruptcy laws, which vary across states and over time, permit debtors to keep assets below a statutory … debts, but they also provide a crude form of consumption insurance. We combine information on state-level bankruptcy laws … bankruptcy rates, (2) households that are more likely to simultaneously hold low-return liquid assets and owe high-cost unsecured …