We assess the credit market impact of allowing mortgage "strip-down" as a foreclosure-prevention measure, where strip … Chapter 13 bankruptcy. Our identification is provided by a series of U.S. court decisions that introduced strip-down in parts …-term reduction in mortgage interest rates and a small, short-term increase in mortgage approval rates, but no long-term effects, and …

-friendly procedure, such as a deed in lieu. We find no evidence that mortgage interest rates are lower in recourse states …

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 …

We build a structural model of Chapter 13 bankruptcy that captures salient features of personal bankruptcy under … Chapter 13. We estimate our model using a novel data set that we construct from bankruptcy court dockets recorded in Delaware … 13 outcomes under the restrictions imposed by the bankruptcy law. We use the estimated model to conduct policy …

Americans are increasingly likely to file consumer bankruptcy, and their representation among those in bankruptcy has never been … higher. Using data from the Consumer Bankruptcy Project, we find more than a two-fold increase in the rate at which older … Americans (age 65 and over) file for bankruptcy and an almost five-fold increase in the percentage of older persons in the U …

Using a comprehensive panel dataset on U.S. households, we study the effects of the 2005 Bankruptcy Abuse Prevention … and Consumer Protection Act (BAPCPA), the most substantive reform of personal bankruptcy in the United States since the … Bankruptcy Reform Act of 1978. The 2005 legislation introduced a means test based on income to establish eligibility for Chapter …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … mortgage distress on house prices. …