We propose a parsimonious model with adverse selection where delinquency, renegotiation, and bankruptcy all occur in … equilibrium as a result of a simple screening mechanism. A borrower has private information about her cost of bankruptcy, and a …, and thus become delinquent. The lender renegotiates with some delinquent borrowers. In the absence of renegotiation …

find that borrowers with a high probability of default are more responsive to maturity than interest rate changes. I also … argue that risk-based pricing may lead to an increase in loan maturity and loan default, rather than alleviating the adverse … selection present on the lending market. Empirical evidence suggests that loan performance is time-dependent and default depends …

significantly reduces severe financial distress, decreasing the likelihood of filing for bankruptcy by 61% in the three years …

. That selection works against banks; large overdrafts cost more to supply and, if depositors default, banks lose more, so …

. That selection works against banks; large overdrafts cost more to supply and, if depositors default, banks lose more, so …

funds. Our results are consistent with an investor-perceived reduction in default probabilities; and suggest that liftoff …

. Results from a quasi-experimental setting show that bankruptcy rates among subprime auto borrowers increase twice as much … tests show that auto repossessions increase the likelihood of bankruptcy, and reduce borrowers' future access to both …