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The Relevancy of Consumer Bankruptcy, For married white women, access to…

- - - - A steady and sufficient income is the key to improved post-bankruptcy financial health. Achievement of this goal in the bankruptcy 'after life' is affected and influenced by, among other things: gender, race, and education.
  - - - Post-bankruptcy credit is more expensive.
        
        Debtors less likely to borrow
        
        35% of debtors using cash for big purchases post-bankruptcy
        
        40% have not accepted a credit card – refusal shows commitment to negotiate the economy without a card.
      - Bankruptcy alters supply of credit – AND transforms debtors’ demand for it. Some families do not return to the credit economy.
- - - - No more rehabilitation once there is repeat. Third time bankrupts – the purpose of the BIA shifts from remedial to one of protection (unsuspecting potential creditors and the integrity of the regime)
      - Repeat bankruptcies emerged in 1980s with easy access to credit
      - As a result of the 2009 amendments to BIA - repeat bankrupts are not supervised by court. Third time bankrupts (and beyond) are still supervised by the Court
- - - - Student debt is almost impossible to discharge in bankruptcy proceedings (in the US).
    - - Benefits of higher education include:
        
        increased wages and reduction of risk of unemployment;
        
        increased tax revenues;
        
        reduced burdens on public services; and
        
        rapid technological innovation and economic growth.
        
        This is ‘human capital theory’. Risk-based pricing of student loans is compatible with this theory.