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Do Student Loan Borrowers Opportunistically Default? Evidence from Bankruptcy Reform

Darolia, Rajeev - 2016

Bankruptcy reform in 2005 eliminated debtors' ability to discharge private student loan debt in bankruptcy. This law aimed to reduce costly defaults by diminishing the perceived incentive of some private student loan borrowers to declare bankruptcy even if they had sufficient income to service...

Persistent link: https://www.econbiz.de/10013004942

The Next 'Big Short' : COVID-19, Student Loan Discharge in Bankruptcy, and the SLABS Market

Roy, Samantha - 2020

Even before the spread of the COVID-19 pandemic, student loan debt—totaling over $1.64 trillion—was a cause for concern, as it is the second largest source of consumer debt in the United States, trailing only mortgage debt. Like mortgage-backed securities, student loan asset-backed...

Persistent link: https://www.econbiz.de/10012830576

Private Student Loans and Bankruptcy : Did Four-Year Undergraduates Benefit from the Increased Collectability of Student Loans

Ang, Xiaoling - 2018

of the law change on private student loans granted to students at four-year undergraduate institutions. Using a unique …

Persistent link: https://www.econbiz.de/10012938300

Strategic Default Among Private Student Loan Debtors : Evidence from Bankruptcy Reform

Darolia, Rajeev - 2017

Bankruptcy reform in 2005 restricted debtors' ability to discharge private student loan debt. The reform was motivated by the perceived incentive of some borrowers to file bankruptcy under Chapter 7 even if they had, or expected to have, sufficient income to service their debt. Using a national...

Persistent link: https://www.econbiz.de/10012944301

Bankruptcy as Consumer Protection : The Case of Student Loans

Hunt, John P. - 2020

that would have stopped the new rules, they went into effect on July 1, 2020.With victimized students effectively deprived … bankruptcy: The median loan default rate at for-profit colleges sued or investigated for wrongdoing against students is estimated …-discharge-ability of student loan debt because victimized students are not abusing the system when they seek relief and because collection …

Persistent link: https://www.econbiz.de/10012827828

New Consumer Bankruptcy in Poland – A New Start Not Only for the Consumer?

Wiśniewska, Dorota - 2019

issues and insolvency procedures. Obtained results indicate the need to equalize bankruptcy proceedings for all natural …

Persistent link: https://www.econbiz.de/10012889798

Consumer Bankruptcy, Mortgage Default and Labor Supply

Li, Wenli; Meghir, Costas; Oswald, Florian - 2022

We specify and estimate a lifecycle model of consumption, housing demand and labor supply in an environment where individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks, education specific productivity shocks, and catastrophic...

Persistent link: https://www.econbiz.de/10013492266

Does the Absolute Priority Rule Still Apply to Individual Chapter 11 Debtors Post-BAPCPA

Mendenhall, Anthony - 2013

Section 1129(b)(1) of the Bankruptcy Code codifies a principle known as the 'absolute priority rule.' The absolute priority rule requires that creditors be provided for in full before holders of equity can receive or retain any property under a plan of reorganization. The absolute priority rule...

Persistent link: https://www.econbiz.de/10013090894

Health and Financial Fragility : Evidence from Car Crashes and Consumer Bankruptcy

Morrison, Edward R. - 2013

This paper assesses the importance of adverse health shocks as triggers of bankruptcy filings. We view car crashes as a proxy for health shocks and draw on a large sample of police crash reports linked to hospital admission records and bankruptcy case files. We report two findings: (i) there is...

Persistent link: https://www.econbiz.de/10013073079

Changes in Personal Bankruptcy Protection Laws : The Impact to Home Mortgage Lending

Damm, Jason - 2019

In the U.S., individuals who file for bankruptcy can protect a certain amount of property from creditor liquidation during the debt settlement process. Our analysis exploits changes in these laws to determine the impact on home mortgage lending. We find that the additional debtor protection...

Persistent link: https://www.econbiz.de/10012895091