Households often rely on professionals with specialized knowledge to make important financial decisions. In many cases, the professional's financial interests are at odds with those of the client. We explore this problem in the context of personal bankruptcy. OLS, fixed effects, and IV estimates...

Consumers often rely on lawyers to make complicated legal decisions, though in many cases, the lawyer's financial interests are at odds with those of the client. We consider this general problem in the context of consumers filing for bankruptcy. Lawyers advise debtors on whether to file the...