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Residential housing and personal bankruptcy

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  • Wenli Li

Abstract

Bankruptcy filings are on the rise, and millions of households have either lost their homes to foreclosure or are on the verge of losing them. One subject of debate amid this rising number of bankruptcies is how personal bankruptcy laws deal with residential housing. This subject centers on two main issues: First, how do personal bankruptcy laws affect the availability of mortgages and the terms on which borrowers obtain mortgages? Second, how do personal bankruptcy filings affect the outcome of mortgage foreclosures? In \\"Residential Housing and Personal Bankruptcy,\\" Wenli Li discusses these questions and examines the economic literature to shed some light on the legislative and policy debates that are likely to recur after the current crisis is over.

Suggested Citation

  • Wenli Li, 2009. "Residential housing and personal bankruptcy," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 19-29.
    • Handle: RePEc:fip:fedpbr:y:2009:i:q2:p:19-29
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/2009/q2/brq209_housing-and-bankruptcy.pdf
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    References listed on IDEAS

    as
    1. Reint Gropp & John Karl Scholz & Michelle J. White, 1997. "Personal Bankruptcy and Credit Supply and Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 217-251.
    2. Michelle J. White & Ning Zhu, 2010. "Saving Your Home in Chapter 13 Bankruptcy," The Journal of Legal Studies, University of Chicago Press, vol. 39(1), pages 33-61, January.
    3. Karen M. Pence, 2006. "Foreclosing on Opportunity: State Laws and Mortgage Credit," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 177-182, February.
    4. Chomsisengphet, Souphala & Elul, Ronel, 2006. "Bankruptcy exemptions, credit history, and the mortgage market," Journal of Urban Economics, Elsevier, vol. 59(1), pages 171-188, January.
    5. Wenli Li, 2007. "What do we know about Chapter 13 personal bankruptcy filings?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4.
    6. Sarah W. Carroll & Wenli Li, 2008. "The homeownership experience of households in bankruptcy," Working Papers 08-14, Federal Reserve Bank of Philadelphia.
    7. Ambrose, Brent W & Buttimer, Richard J, Jr & Capone, Charles A, 1997. "Pricing Mortgage Default and Foreclosure Delay," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(3), pages 314-325, August.
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    Cited by:

    1. Galiani, Sebastián & Gertler, Paul J. & Undurraga, Raimundo & Cooper, Ryan & Martínez, Sebastián & Ross, Adam, 2017. "Shelter from the storm: Upgrading housing infrastructure in Latin American slums," Journal of Urban Economics, Elsevier, vol. 98(C), pages 187-213.

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