IDEAS home Printed from https://ideas.repec.org/a/cpp/issued/v44y2018i2p100-111.html
   My bibliography  Save this article

Impact of Bankruptcy Reform on Consumer Insolvency Choice

Author

Listed:
  • Jason Allen
  • Kiana Basiri

Abstract

We examine the impact of the 2009 amendments to the Canadian Bankruptcy and Insolvency Act on consumer insolvency decisions. The amendments were successful in steering debtors out of Division I debt restructuring and into the more cost-effective Division II debt restructuring. Although total insolvencies remained flat after the amendments, they led to a significant substitution out of bankruptcies and into debt restructuring. The extent of substitution greatly depends on regional and individual circumstances. For example, generous asset exemptions under bankruptcy at the provincial level discourage debt restructuring, whereas home ownership encourages it. Our results show, therefore, that the impact of national bankruptcy policies can have sizably different impacts at the regional level.

Suggested Citation

  • Jason Allen & Kiana Basiri, 2018. "Impact of Bankruptcy Reform on Consumer Insolvency Choice," Canadian Public Policy, University of Toronto Press, vol. 44(2), pages 100-111, June.
  • Handle: RePEc:cpp:issued:v:44:y:2018:i:2:p:100-111
    DOI: 10.3138/cpp.2017-055
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.3138/cpp.2017-055
    Download Restriction: access restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpp:issued:v:44:y:2018:i:2:p:100-111. 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: (Prof. Werner Antweiler). General contact details of provider: https://www.utpjournals.press/loi/cpp .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.