This paper analyzes bankruptcy problems with nontransferable utility as a generalization of bankruptcy problems with monetary estate and claims. Following the classical axiomatic theory of bankruptcy, we formulate some appropriate properties for NTU-bankruptcy rules and study their implications. We explore duality of bankruptcy rules and we derive several characterizations of the generalized pr...

Bankruptcy is a legal procedure that claims a person or organization as a debtor. It is essential to ascertain the risk of bankruptcy at initial stages to prevent financial losses. In this perspective, different soft computing techniques can be employed to ascertain bankruptcy. This study proposes a bankruptcy prediction system to categorize the companies based on extent of risk. The prediction...

Many static neural networks have been studied extensively in financial classification problems. However, dynamic time series predictive classification using neural networks with memory, such as the Gamma Memory neural network (GMNN), may prove more accurate. In this study we compare the predictive accuracy of the GMNN to the Multilayer Perceptron neural network and the statistical approaches of...

Discrete-time survival data with time-varying covariates are often encountered in practice. One such example is bankruptcy studies where the status of each firm is available on a yearly basis. Moreover, these studies often use financial and accounting based ratios to predict bankruptcy. These ratios are also yearly measures and hence are time-varying. In this paper, we propose a new survival tr...

judgment of bankruptcy leads to bankruptcy of merchant. therefore, merchant will be incapable and cannot possess in his asset. various provisions can be found in commercial code, regarding contract’s of bankrupt merchant, which is inconsistent with civil code. article 423 has stipulated that trades of merchant after bankruptcy, in three cases will be void. this position is not consistent with c...

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...

Over the last decade, the topic of bankruptcy has been an object of growing concern. In Canada, the number of business bankruptcies under the Bankruptcy Act has risen significantly since the beginning of the 1980s. From 6,595 in 1980, the number of bankruptcies rose to 8,664 in 1989, to 14,317 in 1992 to finally settle at 11,810 in 1994.1 In addition, a large but uncertain number of business fa...

This paper introduces an explicit institution of bankruptcy into a general equilibrium model of endogenous ̄nancial markets with asymmetric information. The institution of bankruptcy is modelled as a set of rules that determine if an agent is eligible to have his debts discharged. Those rules are called a bankruptcy code. Given a bankruptcy code, we allow free entry of intermediaries o®ering al...

the financial crisis have caused many writers to become concerned with the effectiveness of existing bankruptcy laws, which encompasses both the usefulness of reorganization and liquidation laws, as well as efficiency of the judicial system to uphold the laws in court. this concern accompanied in our legal system with the privatization movement has caused many banks owned by the government to b...

Existing quantitative-theoretic models of bankruptcy do not make a distinction between bankruptcy and default. In reality, default occurs first and is generally – but not always (and perhaps not even typically) – followed by a bankruptcy filing months later. While we possess reasonably sophisticated models of household default, we do not possess a comparably sophisticated model about the timing...