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 …

can choose proceeding out of many alternatives to manage their debt. Even under the official bankruptcy option, debt gets … discharged relatively fast. In line with their different insolvency procedures, the two countries also represent two different …

Every year 400,000 entrepreneurs fail and 60,000 file for personal bankruptcy. The option to declare bankruptcy … insurance and credit conditions. A lenient bankruptcy law always worsens credit conditions, in particular for poor entrepreneurs …, we show that the optimal bankruptcy law is very harsh because the benefits from better credit conditions dominate the …