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 consumption events, while bankruptcy is governed by the basic … Bankruptcy policy …

This paper argues that the U.S. bankruptcy reform of 2005 played an important role in the mortgage crisis and the …, they estimate a hazard model to test whether the 2005 bankruptcy reform caused mortgage default rates to rise. Their major … result is that prime and subprime mortgage default rates rose by 14 percent and 16 percent, respectively, after bankruptcy …

access to unsecured credit (because of bankruptcy costs) and aggregate shocks, we show that the cyclical behavior of … credit match the sizes of credit and bankruptcy volatilities. We also find that when the right to file for bankruptcy does …

What are the positive and normative implications of eliminating bankruptcy protection for indebted individuals? Without … bankruptcy protection, creditors can collect on defaulted debt to the extent permitted by wage garnishment laws. The elimination …

By compiling a novel data set from bankruptcy court dockets recorded in Delaware between 2001 and 2002, the authors … build and estimate a structural model of Chapter 13 bankruptcy. This allows them to quantify how key debtor characteristics …, including whether they are experiencing bankruptcy for the first time, their past-due secured debt at the time of filing, and …

Bankruptcy reform in 2005 eliminated debtors' ability to discharge private student loan debt in bankruptcy. This law … bankruptcy even if they had sufficient income to service their debt. Using a unique, nationally representative sample of … anonymized credit bureau files, we examine the bankruptcy filing and delinquency rates of private student loan borrowers in …

assets (cash and pensions), appearing on the balance sheets of neighboring bankruptcy filers …

bankruptcy filers. In particular, our data allow us to distinguish between Chapter 7 and Chapter 13 bankruptcy filings, to … after bankruptcy filing, most filers have much reduced access to credit in terms of credit limits, and the impact seems to …). Our results, in contrast to prior studies, thus suggest that the current bankruptcy system does not appear to provide much …

This paper uses a unique data set to shed new light on credit availability to consumer bankruptcy filers. In particular …, the authors' data allow them to distinguish between Chapter 7 and Chapter 13 bankruptcy filings, to observe changes in … findings. First, despite speedy recovery in their risk scores after bankruptcy filing, most filers have much reduced access to …