a hypothesis to explain why Spain has one of the world’s lowest business bankruptcy rates, even during the current … the Spanish bankruptcy system relative to that of an alternative insolvency institution, the mortgage system, and the … unattractiveness of the personal bankruptcy law …

Small businesses, the majority of Spanish firms, rarely file for formal bankruptcy when dealing with financial distress …. This is why business bankruptcy rates in Spain are among the lowest in the world, even during the current economic crisis …. To explain this fact we present the following hypothesis. Filing for bankruptcy in Spain is very costly for both small …

which bankruptcy courts have to combine both social efficiency (maintaining employment) and ex post financial efficiency … as a going concern or liquidation). Addressing this dilemma, we discuss the determinants of bankruptcy courts’ selection … employment by facilitating continuation and reducing the domino effects of bankruptcy. (2) the courts’ choice between rival …

bankruptcy models and provide a connection between this bankruptcy law puzzle and the variables depicting the governance of … national bankruptcy law, and (2) the risks associated with each bankruptcy model according to the economic literature on … bankruptcy law. Our final aim is to test whether the various bankruptcy models detailed in the paper perform in separate economic …