The impact of personal bankruptcy law on entrepreneurship

PurposeFlood damage to uninsured single-family homes shifts the entire burden of costly repairs onto the homeowner. Homeowners in the United States and in much of Europe can purchase flood insurance. The Netherlands and Asian countries generally do not offer flood insurance protection to homeowners. Uninsured households incur the entire cost of repairing/replacing properties damaged due to flooding. Homeowners’ policies do not cover damage caused by flooding. The paper examines the link between personal bankruptcy and the severity of flooding events, property prices and financial condition levels.Design/methodology/approachA fully modified ordinary least squares (FMOLS) regression model is developed which uses personal bankruptcy filings as its dependent variable during the years 2000 through 2018. This time-series model considers the association between personal bankruptcy court filings and costly, widespread flooding events. Independent variables were selected that potentially act as mitigating factors reducing bankruptcy filings.FindingsThe FMOLS regression results found a significant, positive association between flooding events and the total number of personal bankruptcy filings. Higher flooding costs were associated with higher bankruptcy filings. The Home Price Index is inversely related to the bankruptcy dependent variable. The R-squared results indicate that 0.65% of the movement in the dependent variable personal bankruptcy filings is explained by the severity of a flooding event and other independent variables.Research limitations/implicationsThe severity of the flooding event is measured using dollar losses incurred by the National Flood Insurance program. A macro-case study was undertaken, but the research results would have been enhanced by examining local areas and demographic factors that may have made bankruptcy filing following a flooding event more or less likely.Practical implicationsThe paper considers the impact of the natural disaster flooding on bankruptcy rates filings. The findings may have implications for multi-family properties as well as single-family housing. Purchasing flood insurance generally mitigates the likelihood of severe financial risk to the property owner.Social implicationsNatural flood insurance is underwritten by the federal government and/or by private insurers. The financial health of private property insurers that underwrite flooding and their ability to meet losses incurred needs to be carefully scrutinized by the insured.Originality/valuePrior studies analyzing the linkages existing between housing prices, natural disasters and bankruptcy used descriptive data, mostly percentages, when considering this association. The study herein posits the same questions as these prior studies but used regression analysis to analyze the linkages. The methodology enables additional independent variables to be added to the analysis.

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Kedudukan Sita Umum Terhadap Sita Lainnya Dalam Proses Kepailitan (The Position Of General Seizure Towards Others In The Process Of Bankrupcy)

Negara Hukum Membangun Hukum untuk Keadilan dan Kesejahteraan ◽

10.22212/jnh.v9i2.1047 ◽

2019 ◽

Vol 9 (2) ◽

pp. 217-234

Author(s):

Luthvi Febryka Nola

Keyword(s):

Law Enforcement ◽

Research Method ◽

Secondary Data ◽

Bankruptcy Law ◽

Legal Research ◽

Legal Principles ◽

Time Period ◽

Library Studies ◽

The Impact

Article 31 paragraph (1) and paragraph (2) of the Indonesian Bankruptcy Law stipulate that all seizures that have been determined on the debtor's assets are null and void since the bankruptcy verdict is pronounced and since then the only validity is general seizure. However, in its practice various seizures are still stipulated on bankrupt assets ranging from civil, criminal and tax seizures. This paper discusses the forms of seizure in the bankruptcy process, the position of general seizure of other seizures in bankruptcy and the impact of the position of general seizure on debt payments to creditors. The research method used is normative legal research using secondary data collected through library studies and document studies. The various data were then analyzed descriptively and qualitatively. This writing found that there are rules in other laws such as Article 39 paragraph (2) KUHAP and Article 6 paragraph (1) Law No. 19 of 2000 that have ruled out the position of general seizure. The experts in each field of science also have different views regarding the position of general seizure. This condition has resulted in the emergence of friction between law enforcement, inconsistency of judges’ decisions, length of bankruptcy proceedings, injustice, unclear data on bankruptcy assets and reduced bankruptcy assets. Therefore, the understanding of law enforcement regarding legal principles, especially the principle of lex specialis derogate legi generalis, needs to be improved. The use of prejudgment seizure in the bankruptcy process must be socialized to maximize control over bankrupt assets. To avoid prolonged process of bankruptcy, the bankruptcy law should limit the time period for the settlement of assets to the curator.AbstrakPasal 31 ayat (1) dan ayat (2) UU Kepailitan mengatur bahwa segala sita yang telah ditetapkan atas harta kekayaan debitor menjadi hapus semenjak putusan pailit diucapkan dan semenjak itu satu-satunya yang berlaku adalah sita umum. Akan tetapi pada praktiknya berbagai sita tetap ditetapkan atas harta pailit mulai dari sita perdata, pidana dan pajak. Tulisan ini membahas tentang bentuk-bentuk sita dalam proses kepailitan, kedudukan sita umum terhadap sita lainnya dalam kepailitan dan dampak dari kedudukan sita umum terhadap pembayaran utang kepada para kreditor. Adapun metode penelitian yang digunakan adalah penelitian hukum normatif dengan menggunakan data sekunder yang dikumpulkan melalui kegiatan studi perpustakaan maupun studi dokumen. Berbagai data tersebut kemudian dianalisis secara deskriptif-kualitatif. Penulisan ini menemukan bahwa adanya aturan dalam UU lain seperti Pasal 39 ayat (2) KUHAP dan Pasal 6 ayat (1) UU No. 19 Tahun 2000 telah mengesampingkan kedudukan sita umum. Ahli masing-masing bidang ilmu juga memiliki pandangan yang berbeda terkait kedudukan sita umum. Kondisi ini berdampak pada munculnya pergesekan antara penegak hukum, inkonsistensi putusan hakim, lamanya proses kepailitan, terjadi ketidakadilan, ketidakjelasan data harta pailit, berkurang bahkan hilangnya harta pailit. Oleh sebab itu, pemahaman penegak hukum tentang asas hukum terutama asas lex specialis derogate legi generalis perlu ditingkatkan. Penggunaan lembaga sita jaminan dalam proses kepailitan harus disosialisasikan untuk memaksimalkan penguasaan terhadap harta pailit. Supaya proses kepailitan tidak berlarut-larut, UU kepailitan harusnya membatasi jangka waktu penyelesaian aset kepada kurator.

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Personal Bankruptcy Law, Wealth and Entrepreneurship: Theory and Evidence from the Introduction of a 'Fresh Start'

SSRN Electronic Journal ◽

10.2139/ssrn.1750282 ◽

2011 ◽

Cited By ~ 3

Author(s):

Frank M. Fossen

Keyword(s):

Bankruptcy Law ◽

Personal Bankruptcy ◽

Fresh Start ◽

Entrepreneurship Theory

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THE IMPACT OF CASINO GAMBLING ON PERSONAL BANKRUPTCY FILING RATES

Contemporary Economic Policy ◽

10.1093/cep/20.4.440 ◽

2002 ◽

Vol 20 (4) ◽

pp. 440-455 ◽

Cited By ~ 38

Author(s):

John M. Barron ◽

Michael E. Staten ◽

Stephanie M. Wilshusen

Keyword(s):

Casino Gambling ◽

Personal Bankruptcy ◽

The Impact

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Some Clinical and Psychobiographical Aspects of Personal Bankruptcy: A Psychoanalytic Inquest

The Journal of Psychiatry & Law ◽

10.1177/009318538301100103 ◽

1983 ◽

Vol 11 (1) ◽

pp. 19-28

Author(s):

Lawrence M. Ginsburg ◽

Sybil A. Ginsburg

Keyword(s):

United States ◽

The United States ◽

Historical Background ◽

Bankruptcy Law ◽

Personal Bankruptcy ◽

Transference And Countertransference

The historical background of bankruptcy law in the United States is examined. The paucity of literature about the psychology of bankrupts is noted. Published studies are cited which trace the stages of ego disintegration under state-imposed constraints. The reported analysis of a bankruptcy lawyer is excerpted to illustrate the link with death which his work unconsciously represented for him. Brief clinical examples of the psychology of two bankrupts are included, with discussion about their psychodynamics. Pronouncements of two prominent patients are quoted and reviewed, along with biographical formulations about post-insolvency transference and countertransference considerations involving their respective analysts.

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