Straight From the Good Professor; Bankruptcy Filings Should be 15 Times Higher

By admin • June 30th, 2010

“A much higher fraction of U.S. households would benefit financially from bankruptcy than actually file.  While the current bankruptcy rate is about 1% of households each year, I calculate that at least 15% of households would benefit financially from filing…[emphasis added]”

This quote is the first sentence of Professor Michelle J. White’s paper, Why Don’t More Households File for Bankruptcy? published in the Journal of Law, Economics, and Organization. Professor White substantiates her claim with specific research and statistics over the next 28 pages.  Professor White’s scholarly background is impressive.  She is a Professor of Economics at University of California, San Diego and a former faculty member of the University of Pennsylvania, New York University and the University of Michigan.  She has been a visiting professor at Yale, Wisconsin, Chicago, and Tilburg and a visiting scholar at Harvard Law School, Berkeley, the Hebrew University, Copenhagen Business School, and the Universities of Bonn, Tel Aviv, Uppsala, and Munich.  Professor White was also a Fulbright Scholar at the University of Warsaw.

Are you part of the lost 14%?

 

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