This paper argues that the debt forgiveness provided by the U.S. consumer bankruptcy system helped stabilize employment … levels during the Great Recession. We document that over this period, states with more generous bankruptcy exemptions had …-post debt forgiveness provided by the consumer bankruptcy system during the Great Recession increased aggregate employment by …

fundamental to the legal system's effectiveness and to the rule of law. About a million people file bankruptcy every year, making … the consumer bankruptcy system the part of the federal court system with which people most often come into contact. Given … the importance of bankruptcy to American families and the credit economy, there should exist a rich literature theorizing …

From Main Street to Wall Street, Americans are hurting. In 2009, over 1.4 million families filed for bankruptcy …. Researchers examining the causes of bankruptcy discovered that as many as sixty-two percent of all bankruptcies were precipitated … bankruptcy imbroglio and provides statistical evidence demonstrating that states mandating disability insurance for most workers …

Our nation’s consumer bankruptcy system supposedly gives “honest but unfortunate” individuals “a new opportunity in … bankruptcy’s discharge of debt is especially important in the wake of the COVID-19 pandemic, which has resulted in a once …-in-a-century economic crisis that is projected to increase consumer bankruptcy filings. The people who file bankruptcy will find a system …

already reduced their non-housing expenditures to below the recommended minimum level used in the personal insolvency system …

The Bankruptcy Abuse Prevention & Consumer Protection Act (“BAPCPA”), enacted in 2005, overhauled the Bankruptcy Code … with the goal of reducing serial filers’ abuse of the bankruptcy system and to increase fairness to both debtors and … bankruptcy was primarily a middle-class issue. Proponents of the BAPCPA believed that it would decrease losses to creditors, and …

Each year, a quarter of a million student loan debtors file for bankruptcy. Of those, fewer than three hundred … titular Student Loan Bankruptcy Gap, and it is a phenomenon that is unprecedented in the law.Drawing upon an original dataset … of nearly five hundred adversary proceedings, this Article examines three key facets of the Student Loan Bankruptcy Gap …

How does bankruptcy affect the dynamics of aggregate consumption? We quantify the trade-off between the insurance and … creditworthiness effects of bankruptcy in response to tighter credit.We show that bankruptcy dampens the effect of tighter credit on … marketreduces consumption smoothing over time and slows the recovery. Default costs play a crucial role in bankruptcy decisions and …

Mortgage cramdown enabled bankruptcy judges to discharge the underwater portion of a mortgage during Chapter 13 … bankruptcy before the Supreme Court disallowed this practice in 1993. We exploit the random assignment of cases to judges to … quantify the ex-post effects of Chapter 13 bankruptcy over the period from 1989 to 1993. We find that a successful Chapter 13 …

Bankruptcy is the legal process whereby financially distressed firms, individuals, and occasionally governments resolve … their debts. The bankruptcy process for firms plays a central role in economics, because competition drives inefficient … corporate bankruptcy is to reduce the cost of default by having a government-sponsored procedure that resolves all debts …