Empirical research in bankruptcy has expanded rapidly in the past twenty years. The increase in scholars interested in … remain difficult and plagued with inconsistency. Moreover, some relevant facts pertinent to the bankruptcy system cannot be … bankruptcy; it argues that empirical studies have had an important influence on specific issues in the debates leading to the …

What is the optimal consumer bankruptcy law? I examine this question in the context of an incomplete markets lifecycle … model with a planner who can choose state-contingent bankruptcy costs. I develop two key theoretical characterizations … filing. Second, it is optimal for the planner to always allow bankruptcy if the household cannot repay or would prefer an …