FORGIVE US OUR DEBTS: THE GREAT RECESSION OF 2008-09

This research analyzes bankruptcies, mortgages past due and foreclosures from 1999 - 2009 and finds that bankruptcy filings, mortgages past due, and foreclosures are all positively related to the unemployment rate and negatively related to the change in housing values. Results show that borrowers se...

Full description

Saved in:

Bibliographic Details
Published in:	Journal of legal, ethical and regulatory issues Vol. 14; no. 2; p. 1
Main Authors:	Edmonds, Thomas N, Stevenson, Leo J, Swisher, Judith
Format:	Journal Article
Language:	English
Published:	London Allied Business Academies 01-07-2011
Subjects:	Bankruptcy Consumer protection Consumers Default Equity Foreclosure Garnishment Great Recession Housing Housing prices Mortgages Personal bankruptcy Recessions Stock exchanges Studies Unemployment United States > US
Online Access:	Get full text
Tags:	Add Tag No Tags, Be the first to tag this record!

Description
Summary:	This research analyzes bankruptcies, mortgages past due and foreclosures from 1999 - 2009 and finds that bankruptcy filings, mortgages past due, and foreclosures are all positively related to the unemployment rate and negatively related to the change in housing values. Results show that borrowers seek bankruptcy protection at greater rates in states with stronger lender garnishment laws and that states with shorter foreclosure timelines see higher rates of bankruptcy filings. Evidence also suggests that some borrowers engage in strategic default. After controlling for other variables, bankruptcy rates are lower in states in which a strong incentive to default strategically exists. [PUBLICATION ABSTRACT]
ISSN:	1544-0036 1544-0044