Insolvency and Bankruptcy Reforms: The Way Forward

Bankruptcy : past Puzzles , Recent Reforms , and the Mortgage Crisis

This paper discusses four bankruptcy-related policy issues. First, what is the economic rationale for having a bankruptcy procedure at all and what defines an economically efficient bankruptcy procedure? Second, why did the number of U.S. bankruptcy filings increase so dramatically between 1980 and 2005? Third, a major bankruptcy reform went into effect in the U.S. in 2005—what did it do and ho...

health scope in iran: the way forward

An Optimal Personal Bankruptcy Procedure and Proposed Reforms

We investigate a proposed reform of U.S. personal bankruptcy law which combines Chapters 7 and 13. The proposed reform obliges debtors in bankruptcy to use part of both their wealth and their future earnings to repay debt and therefore bases the obligation to repay in bankruptcy on debtors' ability-to-pay. An important function of personal bankruptcy is to provide partial wealth insurance for r...

Bankruptcy Proceedings for Sovereign State Insolvency and their E®ect on Capital Flows

The paper examines the main issues involved in translating domestic bankruptcy procedures to the sovereign context. It considers some of the principles by which domestic bankruptcy procedures operate, and the extent to which they apply to international lending. Two recent proposals are considered in more detail, that of Krueger (2001) and that of Pettifor (2002). The paper also considers the qu...

The Way Forward Is the Way Back

“T viewer should see the object as I saw it, but with a lot of room for his own interpretation....The painting is like a very clear mirror which is barely visible but unmistakably there,” reflects Spanish painter Antonio López García (b. 1936) (1). “I am nostalgic for an art of our times in which a greater number of people can participate” (1). Part of a contemporary movement rooted in the trad...