Bankruptcy gives individuals a fresh start by allowing them to discharge much of their unsecured debt. But the consequences of bankruptcy do not end when the legal process is complete. After bankruptcy, families still must figure out how to make ends meet and how to interact with the credit...

Despite the fact they are used by millions of Americans, auto title loans have received little attention in the legal literature about consumer credit. Friends and foes of title lending make confident statements about their net welfare effects, but we still lack empirical data on many of the...

Outside of bankruptcy, the right of a secured creditor to “credit bid” allows the secured creditor to compete with cash bids in foreclosure to assure that the secured creditor's collateral is not sold for less than the secured creditor thinks it is worth. In reorganization cases under...

Using a unique data set on companies' defaults provided by a consortium of 31 banks, this paper gives new insights into the determinants of the workout-loss-given-default (W-LGD): losses based on the cash flows observed between the default and the resolution times.As between 1997 and 2010, 18%...

Using a unique data base of Global Credit Data with individual loan information from small and medium sized entities in Germany, Great Britain and the United States, we evaluate the time to resolution of defaulted loans. A comparison across countries reveals country specific drivers for the...

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of insolvent firms happens out of court if in-court...

This research investigates how legal sanctions prevailing under bankruptcy impact on debt contracting and on investing decision, when companies may engage faulty management. Unlike most papers considering a passive behavior of the bank in case of default of the borrower, the creditor and the...

An electronic stock exchange is a market place where buyers and sellers of financial instruments conclude trades without physical contact. In India, we have electronic exchanges for currencies, commodities, equity, debt, etc. This article looks at the need for and importance of an electronic...

We define a class of margin loans and derive the distribution of defaults. The default risk from an individual loan can be priced as a series of forward starting options with a knockout. Under simple price dynamics this has an explicit solution

Non-performing Loans (NPLs) have international ramifications because many banks operate in several countries and NPL-resolution related laws enacted in their home countries affect their foreign operations. While the management of Non-performing Loans (NPLs) remains a major problem around the...