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access to unsecured credit (because of bankruptcy costs) and aggregate shocks, we show that the cyclical behavior of … credit match the sizes of credit and bankruptcy volatilities. We also find that when the right to file for bankruptcy does …
Persistent link: https://www.econbiz.de/10012197797
What are the positive and normative implications of eliminating bankruptcy protection for indebted individuals? Without … bankruptcy protection, creditors can collect on defaulted debt to the extent permitted by wage garnishment laws. The elimination …
Persistent link: https://www.econbiz.de/10014178172
In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm … dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization … to include both bankruptcy options in a general equilibrium environment. Finally, we evaluate a bankruptcy policy change …
Persistent link: https://www.econbiz.de/10012953790
In many countries, lenders are restricted in their access to information about borrowers' past defaults. The authors study this provision in a model of repeated borrowing and lending with moral hazard and adverse selection. They analyze its effects on borrowers' incentives and access to credit,...
Persistent link: https://www.econbiz.de/10013114975
lent first are given priority in any bankruptcy or restructuring proceedings. The goal of this paper is to incorporate …
Persistent link: https://www.econbiz.de/10013105244
Rapid house-price depreciation and rising unemployment were the main drivers of the huge increase in mortgage default during the downturn years of 2007 to 2010. However, mortgage default was also partly driven by an increased reliance on alternative mortgage products such as pay-option ARMs and...
Persistent link: https://www.econbiz.de/10013076005
We are the first to show that the cost of personal bankruptcy filers traveling to their bankruptcy trustees affects … bankruptcy choices. We use detailed balance sheet, income statement, and location data from 400,000 Canadian bankruptcies. To … bankruptcy trustees (while filers interact with trustees, and trustees interact with local government, filers do not interact …
Persistent link: https://www.econbiz.de/10013052186
August 2013, Revised December 2014 Rapid house-price depreciation and rising unemployment were the main drivers of the huge increase in mortgage default during the downturn years of 2007 to 2010. However, mortgage default was also associated with an increased reliance on alternative mortgage...
Persistent link: https://www.econbiz.de/10013017416
Rapid house-price depreciation and rising unemployment were the main drivers of the huge increase in mortgage default during the downturn years of 2007 to 2010. However, mortgage default was also associated with an increased reliance on alternative mortgage products such as pay-option and...
Persistent link: https://www.econbiz.de/10013029842
evaluate the 2005 bankruptcy law reform. The calibrated model indicates that the 2005 reform reduces bankruptcies, as seen in …
Persistent link: https://www.econbiz.de/10012986504