This article rst examines the economic justication for having a personal bankruptcy procedure at all. I argue that it is economically worthwhile to have a bankruptcy pro- cedure, but that costs rise more quickly than benets as the exemption level increases.
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Paper provided by Michigan - Center for Research on Economic & Social Theory in its series Papers with number
98-02.
Length: 37 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:michet:98-02
Contact details of provider: Postal: UNIVERSITY OF MICHIGAN, DEPARTMENT OF ECONOMICS CENTER FOR RESEARCH ON ECONOMIC AND SOCIAL THEORY, ANN ARBOR MICHIGAN U.S.A.
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Find related papers by JEL classification: G30 - Financial Economics - - Corporate Finance and Governance - - - General G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
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