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. Finally, we find that those debtors who misreported income had a lower probability of default on their debt repayment plans …
Persistent link: https://www.econbiz.de/10014236487
Chapter 7 bankruptcy, the main debt relief program for U.S. households, provides more than $150 billion in debt relief … each year, yet its impact on consumers remains unclear. Using unique hand-collected data from individual bankruptcy …
Persistent link: https://www.econbiz.de/10012855345
Increasing personal bankruptcy protection raises consumers' desire to borrow and lenders' cost of extending credit; the … impact on equilibrium borrowing is ambiguous. Using bankruptcy protection changes between 1999 and 2005 across U.S. states …
Persistent link: https://www.econbiz.de/10014519066
This paper examines the disparity in default risk between vulnerable and non-vulnerable populations in consumer lending … the probability of default. We find that vulnerable individuals have a higher risk than non-vulnerable individuals …. Specifically, interest rates explain at least 30 percent of the risk gap. We also find that the default probabilities faced by …
Persistent link: https://www.econbiz.de/10014557435
after the financial crisis. We also nd that consumers with a bankruptcy history, a conspicuous signal of higher default risk …
Persistent link: https://www.econbiz.de/10013093419
significantly reduces severe financial distress, decreasing the likelihood of filing for bankruptcy by 61% in the three years …
Persistent link: https://www.econbiz.de/10015053784
During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
Persistent link: https://www.econbiz.de/10012137091
We define predatory lending as a welfare-reducing provision of credit. Using a textbook model, we show that lenders profit if they can tempt households into “debt traps,” that is, overborrowing and delinquency. We then test whether payday lending fits our definition of predatory. We find...
Persistent link: https://www.econbiz.de/10010283443
Persistent link: https://www.econbiz.de/10011382564
We examine how financial technology affects household hardship in terms of personal bankruptcy. We exploit an exogenous … bankruptcy arise principally from reversing access to new lending technology …
Persistent link: https://www.econbiz.de/10012851934