New Insights In The Determinants Of Regional Variation In Bankruptcy Filing Rates

Topics:
Bankruptcy
Tags:
Bankruptcy,
Bankruptcy Filing Rate,
Business Operations,
Litigation
Source:
Federal Reserve Bank of Kansas City

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Overview: Nonbusiness bankruptcy filing rates have increased very rapidly over the last couple of decades. In 1980, roughly 15 of every 10,000 Americans filed for bankruptcy protection. By 2004, that number had reached 54 of every 10,000 Americans. These alarming increases in bankruptcy filing rates over the last decade were largely the impetus for the Bankruptcy Abuse Prevention and Consumer Protection Act, which went into effect in October, 2005. A substantial literature already exists that seeks to determine the causes of personal bankruptcy, but critical holes in the literature remain. In particular, existing studies offer only weak inferences about the role of stigma in explaining the decision to file for bankruptcy or in explaining regional variation in bankruptcy filing rates.

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Format: PDF | Size: 625KB | Date: Nov 2005 | Pages: 45

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