In 2001, 1.458 million American families filed for bankruptcy. To investigate medical contributors to bankruptcy, we surveyed 1,771 personal bankruptcy filers in five federal courts and subsequently completed in-depth interviews with 931 of them. About half cited medical causes, which indicates that 1.9-2.2 million Americans (filers plus dependents) experienced medical bankruptcy. Among those w...

We examine whether individuals are influenced to file for bankruptcy by the past bankruptcies of their close neighbors. We find that a one standard deviation increase in neighborhood bankruptcies increases the probability of defaulting via bankruptcy rather than via credit card charge-off by 6%. Our individual level data on defaulters is from detailed credit card accounts, which is matched to n...

the development of the cyprus stock exchange together with the increasing trend of investors’ presence in financing activities has led to the importance of this market. in such circumstances, the first step towards a sustainable development of the exchange is to support the investors. risk of bankruptcy for the investee is a major challenge that an inexperienced stock investor encounters. in th...

Bankruptcy prediction is a major issue in classification of companies. Since bankruptcy is extremely costly, investors, owners, managers, creditors, and government agencies are interested in evaluating the financial status of companies. This study tried to predict bankruptcy among companies registered in Tehran Stock Exchange (Iran) by designing imperialist competitive algorithm and genetic alg...

Are consumers who have filed for personal bankruptcy before excluded from the unsecured credit market? Using a unique data set of credit card mailings, we directly explore the supply of unsecured credit to consumers with the most conspicuous default risk—those with a bankruptcy history. On average, over one-fifth of personal bankruptcy filers receive at least one offer in a given month, with th...

The economic approach to bankruptcy envisions bankruptcy law as a set of rules approximating the contractual terms to which, at the time credit is extended, a creditor and debtor would agree should govern in the event of the debtor's insolvency. Some traditional bankruptcy scholars criticize the economic approach for what they see as its failure to advance goals and values which they deem neces...

BANKRUPTCY REFORM’S ROLE IN THE MORTGAGE CRISIS This paper argues that the U.S. bankruptcy reform of 2005 played an important role in the mortgage crisis and the current recession. When debtors file for bankruptcy, credit card debt and other types of debt are discharged — thus loosening debtors’ budget constraints. Homeowners in financial distress can therefore use bankruptcy to avoid losing th...

After the 2007-2008 subprime financial crisis considering bankruptcy evaluation for the banking industry becomes vital. In line of that, this study aims to analyze the bankruptcy profile of foreign versus domestic Islamic banks operating in Malaysia. This study predicted 40% and 75% bankruptcy in the subjected samples of foreign and domestic Islamic banks of Malaysia respectively. However, the ...

C urrent U.S. bankruptcy law has two separate bankruptcy procedures, known as Chapter 7 and Chapter 13. When a debtor files for bankruptcy under Chapter 7, he or she must give up all assets not legally sheltered from creditor seizure in exchange for a discharge of almost all preexisting debts. Under Chapter 13, a debtor may keep all property in exchange for a promise to pay all or some specifie...

This empirical study analyzes the value destruction in US and German firms prior and around their bankruptcy announcement and makes a matched sample comparison between the two bankruptcy codes. The dataset consists of 1160 US and 116 German firms, having filed for bankruptcy between 1999 and 2007. Different market and balance sheet based data are used to explain the divergent stock reaction aro...