AN ANATOMY OF U.S. PERSONAL BANKRUPTCY UNDER CHAPTER 13

Hülya Eraslan; Gizem Koşar; Wenli Li; Pierre Daniel Sarte

doi:10.1111/iere.12231

AN ANATOMY OF U.S. PERSONAL BANKRUPTCY UNDER CHAPTER 13

Hülya Eraslan, Gizem Koşar, Wenli Li^*, Pierre Daniel Sarte

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

We build a structural model that captures salient features of personal bankruptcy under Chapter 13. We estimate our model using a novel data set that we construct from bankruptcies filed in Delaware between 2001 and 2002. Our estimation results highlight the importance of a debtor's choice of repayment plan length on other Chapter 13 outcomes. We use the estimated model to conduct policy experiments to evaluate the impact of more stringent laws that impose restrictions on the length of repayment plans. We find that these provisions would not materially affect creditor recovery rates and would not necessarily make discharge more likely.

Original language	English
Pages (from-to)	671-702
Number of pages	32
Journal	International Economic Review
Volume	58
Issue number	3
DOIs	https://doi.org/10.1111/iere.12231
Publication status	Published - Aug 2017
Externally published	Yes

Bibliographical note

Publisher Copyright:
© (2017) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association

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abstract = "We build a structural model that captures salient features of personal bankruptcy under Chapter 13. We estimate our model using a novel data set that we construct from bankruptcies filed in Delaware between 2001 and 2002. Our estimation results highlight the importance of a debtor's choice of repayment plan length on other Chapter 13 outcomes. We use the estimated model to conduct policy experiments to evaluate the impact of more stringent laws that impose restrictions on the length of repayment plans. We find that these provisions would not materially affect creditor recovery rates and would not necessarily make discharge more likely.",

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AB - We build a structural model that captures salient features of personal bankruptcy under Chapter 13. We estimate our model using a novel data set that we construct from bankruptcies filed in Delaware between 2001 and 2002. Our estimation results highlight the importance of a debtor's choice of repayment plan length on other Chapter 13 outcomes. We use the estimated model to conduct policy experiments to evaluate the impact of more stringent laws that impose restrictions on the length of repayment plans. We find that these provisions would not materially affect creditor recovery rates and would not necessarily make discharge more likely.

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AN ANATOMY OF U.S. PERSONAL BANKRUPTCY UNDER CHAPTER 13

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