This paper revisits the proposal to use options in corporate bankruptcy that was put forward in Bebchuk (1988 …). According to the proposed procedure, corporate bankruptcy should be implemented through the distribution to participants of … appropriately designed options. The paper starts by discussing the goals that should guide the design of bankruptcy procedures. The …

territoriality' -- in which assets are adjudicated by the jurisdiction in which they are located at the time of the bankruptcy …

Judicial decisions in bankruptcy are often influenced by the goal to preserve employment in financially distressed … market outcomes. We find that workers of firms assigned to high-pro-labor courts experience 4.4% lower post-bankruptcy … persistent in the five-year period after bankruptcy. We discuss several mechanisms that can drive this result …

Mortgage cramdown enabled bankruptcy judges to discharge the underwater portion of a mortgage during Chapter 13 … bankruptcy before the Supreme Court disallowed this practice in 1993. We exploit the random assignment of cases to judges to … quantify the ex-post effects of Chapter 13 bankruptcy over the period from 1989 to 1993. We find that a successful Chapter 13 …