Informal Bankruptcy

  title={Informal Bankruptcy},
  author={Amanda E. Dawsey and Lawrence M. Ausubel},
  • Amanda E. Dawsey, Lawrence M. Ausubel
  • Published 2001
The economics literature generally views personal bankruptcy as the consumer’s only alternative to the repayment of debts. This paper focuses instead on informal bankruptcy, the term we propose for non-repayment without the benefit of the formal bankruptcy process. Using data from a large credit card issuer, we find evidence that informal bankruptcy is… CONTINUE READING