scholarly journals Hurdles to debt relief for “no income no assets” debtors in Germany: A case study of failed consumer bankruptcy law reforms

2020 ◽  
Vol 29 (S1) ◽  
Author(s):  
Jan‐Ocko Heuer
Keyword(s):  
Debt Relief ◽  
Bankruptcy Law ◽  
Consumer Bankruptcy

scholarly journals Debt Relief and Debtor Outcomes: Measuring the Effects of Consumer Bankruptcy Protection

2015 ◽  
Vol 105 (3) ◽  
pp. 1272-1311 ◽  
Author(s):  
Will Dobbie ◽  
Jae Song
Keyword(s):  
United States ◽  
Social Insurance ◽  
The United States ◽  
Debt Relief ◽  
Random Assignment ◽  
Percentage Points ◽  
Consumer Bankruptcy ◽  
Annual Earnings ◽  
The Impact

Consumer bankruptcy is one of the largest social insurance programs in the United States, but little is known about its impact on debtors. We use 500,000 bankruptcy filings matched to administrative tax and foreclosure data to estimate the impact of Chapter 13 bankruptcy protection on subsequent outcomes. Exploiting the random assignment of bankruptcy filings to judges, we find that Chapter 13 protection increases annual earnings by $5,562, decreases five-year mortality by 1.2 percentage points, and decreases five-year foreclo-sure rates by 19.1 percentage points. These results come primarily from the deterioration of outcomes among dismissed filers, not gains by granted filers. (JEL D14, I12, J22, J31, K35)

scholarly journals The Retreat of American Bankruptcy Law

2017 ◽  
Vol 17 (1) ◽  
pp. 40
Author(s):  
Jay Westbrook
Keyword(s):  
United States ◽  
21St Century ◽  
Empirical Studies ◽  
The United States ◽  
Bankruptcy Law ◽  
Collection Device ◽  
Consumer Bankruptcy ◽  
First Time ◽  
Reduction Of Costs

In 2005 the United States adopted provisions constraining the bankruptcy ‘fresh start’ for the first time in its history. This paper describes the experience under the 2005 amendments over the decade since their enactment, including the data reported by empirical studies of their effects. It suggests a reappraisal of the goals of consumer bankruptcy law in the 21st century, including the simplification and reduction of costs that would arise from abandoning the idea that bankruptcy law should be used as a collection device for professional creditors in consumer cases. It discusses various possible approaches for a new reform while emphasising the importance of the continuing role of lawyers and courts in the consumer bankruptcy process.  

scholarly journals Separatist Creditors vs Preferred Creditors Rights in the Bankruptcy Case Based on the Decision of Constitutional Court of 2013

FIAT JUSTISIA ◽  
2019 ◽  
Vol 13 (3) ◽  
pp. 231
Author(s):  
Rilda Murniati ◽  
Desma Cahya Selvya
Keyword(s):  
Judicial Review ◽  
Legal Status ◽  
Labor Law ◽  
Bankruptcy Law ◽  
Constitutional Court ◽  
The Right ◽  
Case Based

Workers are preferred creditors whose payment must take precedence in the bankruptcy of the company. Problems in practice occur in the company's assets as collateral for debt to separatist creditors so that workers' rights are ruled out. Therefore, workers submit applications for judicial review of the Bankruptcy Law and Labor Law. This study is normative research using primary legal materials, namely laws and case study decisions that are analysed qualitatively. The results of the study and discussion determined that the Bankruptcy Law and the Labor Law regulate the same as the legal status of workers as preferred creditors who are entitled to prioritize payment in the distribution of bankrupt assets strengthened by the results of a judicial review in Decision of the Constitutional Court Number 67/PUU-XI/2013 The right of workers to wages is prioritized and calculated from collateral objects which are the rights of separatist creditors. For this reason, curators with authority must share the right of separatist creditors and preferred creditors with the principle of balance and justice so that all the assets of a bankrupt company can pay off the debts of its creditors.

scholarly journals Origin and legal regulation of the second chance for entrepreneurs in the European Union

2021 ◽  
pp. 91-104
Author(s):  
Marijana Dukić-Mijatović ◽  
Ozren Uzelac
Keyword(s):  
Legal Theory ◽  
Legal Regulation ◽  
Debt Relief ◽  
Bankruptcy Law ◽  
Legal Systems ◽  
The European Union ◽  
Capitalist System ◽  
Eu Directive ◽  
Second Chance ◽  
The Eu

In the history of human civilization, there has always been the problem of overindebtedness and personal bankruptcy, as well as the tendency to protect such persons to some extent from excessive sanctions or the consequences of their insolvency. Benevolence towards the debtor is limited by the existence of conditions of conscientiousness and honesty of the debtor in all legal systems, while the amount of debt forgiveness is different. Debt relief and providing a new chance to the entrepreneur is a kind of systemic social measure that should ensure the employment of the individual and his family, but also to ensure the continuity of the capitalist system. It is noticeable that benevolence towards the debtor through debt relief was a characteristic of the Anglo-Saxon jurisdictions, while the regulations of the states of legal systems based on Roman law were traditionally oriented in the opposite direction. Although the Republic of Serbia has regulated the matter of bankruptcy and reorganization, in many parts under the EU Directive on reorganization and bankruptcy from June 2019, it has not been the case with the area of the second chance for the entrepreneur and the possibility of debt release, so it will be necessary to adjust national regulations of bankruptcy. In this paper, the authors analyze the origin of debt forgiveness in case of entrepreneur bankruptcy through history and theories, and select the comparative law and provisions of the EU Directive on reorganization and bankruptcy which regulate the second chance for entrepreneurs, as well as the purpose and measures that preceded the adoption of this Directive. Another important possibility for insolvent entrepreneurs is their personal administration with bankruptcy estate during the process of reorganization. Entrepreneurs' personal administration is regulated by bankruptcy legislation in various ways in comparative legal systems, and in Serbian law, it had been regulated for the first time by the Bankruptcy Procedure Act of 2004, but repealed by the Bankruptcy Act in 2009. Taking into account its importance for the national bankruptcy law, Serbian legal theory has already given the reasons due to which it is necessary to reintroduce the institute of personal administration of debtors into domestic bankruptcy law. On the other hand, sole debt release in Serbian law comes into effect at the moment the creditor declares to the debtor that he will not ask for the fulfillment of the debt and the debtor agrees with that, and such an agreement is made in writing. Debt release is a possibility provided in the Agreed Financial Restructuring Act 2015 that creditor and debtor may use during the process of reorganization, provided they reach an agreement to that end.

Economics and Politics of Russian Bankruptcies

2004 ◽  
pp. 118-135 ◽  
Author(s):  
E. Zhuravskaya ◽  
K. Sonin
Keyword(s):  
Transition Economy ◽  
Budget Constraint ◽  
Bankruptcy Law ◽  
Political Elites ◽  
Firm Level ◽  
Level Data ◽  
Day To Day Operations ◽  
Unexpected Outcomes ◽  
Economics And Politics

Laws that work well in developed market economies may produce unexpected outcomes in a corrupt environment. Once a legal institution is formally in place, it might be subverted by those who control its day-to-day operations. This paper focuses on the institution of bankruptcy to provide a case study of institutional subversion in a transition economy. The firm-level data analysis shows that Russia's bankruptcy law of 1998 did not result in improving managerial budget constraint. Instead of removing weak management and closing down loss-making enterprises as intended, it initiated a wave of inefficient property redistribution controlled by regional political elites.

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