We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto … of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and …

-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller's (1958 …

In an earlier article, The Uneasy Case for the Priority of Secured Claims in Bankruptcy,' 105 Yale Law Journal 857 … (1996), we suggested that the case for a full priority of secured claims in bankruptcy is an uneasy one. In this paper, we … confirms our earlier conclusion that the case for a full priority of secured claims in bankruptcy is an uneasy one …

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 …

An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism … driving asset prices to 'overshoot' equilibrium when an asset bubble bursts--threatening widespread insolvency and what … to crisis resolution. The usual bankruptcy procedures for doing this fail to internalise the price effects of asset 'fire …

event of default, the creditors can seize the collateral. We assume that there is a small cost of liquidating the assets …. The debt capacity of the assets (the maximum amount that can be borrowed using the assets as collateral) depends on the …

From 1980 to 2004, the number of personal bankruptcy filings in the United States increased more than five-fold, from … 288,000 to 1.5 million per year. Lenders responded to the high filing rate with a major lobbying campaign for bankruptcy … reform that led to the adoption in 2005 of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which made …