This paper studies the optimal determination of bankruptcy exemptions for risk averse borrowers who use unsecured … sufficient to determine whether a bankruptcy exemption level is optimal, or should be increased or decreased. These variables are …' leverage, the borrowers' bankruptcy probability, and the change in bankrupt borrowers' consumption. An application of the …

of increases in the amount and share of delinquent debt (90 days past due or more) and of increases in bankruptcy risk …

Auto lenders were perhaps the biggest winners of the 2005 Bankruptcy Reform. Cars depreciate quickly, so borrowers … to the market value of the car through a "cramdown" in Chapter 13 bankruptcy. The Reform prohibited cramdowns during the … eliminating cramdowns affected only one of the two types of consumer bankruptcy: Chapter 13. They exploit persistent historical …

). The HDC can order an immediate repayment or grant a debt suspension. Exploiting the random assignment of bankruptcy … importance of regulation of credit distribution to avoid both entering into bankruptcy and re-filing for 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 …