Advanced Search
MyIDEAS: Login to save this article or follow this journal

A new perspective on rising nonbusiness bankruptcy filing rates : analyzing the regional factors


Author Info

  • Kelly D. Edmiston


Nonbusiness bankruptcy filing rates have increased almost five-fold since 1980. This alarming growth was largely the impetus for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The intent of the new law, which went into effect in October, 2005, was to eliminate alleged abuses of the bankruptcy system and to reduce filing rates. ; In deliberations on the new law, Congress expressed concern about the underlying causes of bankruptcy. The tools currently available for analysis leave serious gaps in understanding bankruptcy behavior. While many studies have sought to discover the causes of the rising filing rates, they have largely focused on aggregated data over time. This approach is logical—but ignores the considerable variation in filing rates across regions. Only by examining the regional differences in rates can we gain meaningful insight into their causes. ; Edmiston describes a new model of county bankruptcy filing rates. The model contributes to the current understanding by improving on some of the approaches already used in other studies and by including a number of determinants not previously considered. He concludes that homestead exemptions and wage garnishments can be effective policy levers in managing rising bankruptcy filing rates. He also finds that social issues—stigma, gambling, and health insurance, among others—are critical regional factors that may help explain the rising bankruptcy filing rates. Finally, he shows that higher levels of self-employment, another regional characteristic, are associated with lower bankruptcy filing rates.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by Federal Reserve Bank of Kansas City in its journal Economic Review.

Volume (Year): (2006)
Issue (Month): Q II ()
Pages: 55-83

as in new window
Handle: RePEc:fip:fedker:y:2006:i:qii:p:55-83:n:v.91no.2

Contact details of provider:
Postal: One Memorial Drive, Kansas City, MO 64198
Phone: (816) 881-2254
Web page:
More information through EDIRC

Order Information:

Related research

Keywords: Bankruptcy;


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Megan D. Williams, 2007. "The Tenth District's defining industries: changes and opportunities for rural communities," Main Street Economist, Federal Reserve Bank of Kansas City, issue 5.
  2. Adkisson, Richard V. & Saucedo, Eduardo, 2012. "Emulation and state-by-state variations in bankruptcy rates," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 400-407.
  3. Thomas A. Garrett, 2007. "The rise in personal bankruptcies: the Eighth Federal Reserve District and beyond," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 15-38.
  4. Chad R. Wilkerson & Megan D. Williams, 2007. "The Tenth District's defining industries: how are they changing?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 59-81.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:2006:i:qii:p:55-83:n:v.91no.2. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.