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 … corporate bankruptcy is to reduce the cost of default by having a government-sponsored procedure that resolves all debts …

). The HDC can order an immediate repayment or grant a debt suspension. Exploiting the random assignment of bankruptcy … importance of regulation of credit distribution to avoid both entering into bankruptcy and re-filing for bankruptcy. …