The fact that 20 percent of personal bankruptcyfilings list business debts suggests that personal bankruptcy procedures areimportant for entrepreneurs. Whether individuals are more likely to becomeentrepreneurs if they live in states with higher bankruptcy exemptions warrantsinvestigation. A...

Bankruptcy is the legal process whereby financially distressed firms, individuals, and occasionally governments resolve their debts. The bankruptcy process for firms plays a central role in economics, because competition drives inefficient firms out of business, thereby raising the average...