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Link between Bankruptcy Accessibility and Economic Performance - Coggle…
Link between Bankruptcy Accessibility and Economic Performance
Users of the Bankruptcy System
Middle Class
The New Economics of the American Family
Highlights how many regular middle-class families are struggling to maintain stability in the face of structural changes, increased financial vulnerability, and the erosion of traditional safety nets; it also highlights how important it is to regulate interest rates and provide bankruptcy protection in order to protect the well-being for these families.
Financially Fragile Households
Emphasises how common financial fragility is among American households, highlighting potential consequences for business innovation and thus the economy without necessary changes and protections (e.g., accessible bankruptcy system).
Why Middle Class Wealth is Withering
Describes the middle class's high rate of dissavings, stagnating wages, and growing income and wealth disparity add to an unstable economic environment that exacerbates inequality and jeopardises social mobility in the United States. Demonstrates this group's need for insolvency system access.
A Wash in a Sea of Debt: Oblivious to the Risks, Canadians are Piling on Record Debt Loads
Draws attention to Canada's dangerous housing market, which is marked by skyrocketing prices, rising household debt, and the possibility of an economic disaster akin to America's previous housing bubble. Suggests that the average person could be at risk of bankruptcy.
Canada’s Middle Class is on the Brink of Ruin,
Discusses the precarious financial circumstances that many regular Canadian families find themselves in, stressing the weight of debt, the susceptibility to shocks to the economy, and the challenge of maintaining a desired standard of living in the face of rising expenses and stagnating incomes.
The Fragile Middle Class : Americans in Debt
Emphasizes how the middle class's financial security is under threat from factors such as declining job stability, family problems, rising medical costs, the burden of home ownership, and consumer debt, leading to a reassessment of the prospects for this important economic group in society.
Other Disproportionally Impacted Groups
Portraits of Bankruptcy Filers
Discusses the ever evolving bankruptcy filing landscape with changing predominant users and related need for consistent consumer bankruptcy system reform to improve efficacy and efficiency.
Bankrupt Children
Emphasises the importance of bankruptcy as a tool for families experiencing financial difficulties, especially those that have children who are also impacted.
Racial, Gender, Wage Gaps Persist in U.S. Despite Some Progress
Wage disparities that persist in the United States despite advancements in education, occupation, and industry suggest that discrimination is still present. This can pose disproportionate bankruptcy risk for certain groups.
Students
The Indentured Generation: Bankruptcy and Student Loan Debt
In order to lessen the financial burden of the Indentured Generation, a revaluation of student loans within the bankruptcy system is required. The conclusion underscores the enduring plight of this generation, which is shackled by lifelong student loan debt and made worse by a lack of relief options and unfavourable economic conditions.
Student Debt and the Crushing of the American Dream
Describes how the nation's spiralling inequality and the student debt crisis are intertwined, with the wealthy enjoying guaranteed opportunities while others risk enormous debts. Calls for immediate reform in order to promote growth, moral integrity, and economic recovery for this impacted group.
Millennials in Crisis: Myth-Busting Millennial Debt Narratives
Emphasises the shortcomings of the media narratives that currently prevail about millennial finances and highlights increasing debt loads across generations.
Risks of Accessible Bankruptcy Systems
Balance between Stakeholders
Risk-Based Student Loans
Emphasises the need for risk-based pricing in federal student loan programmes to align educational choices with employment opportunities, promote market responsiveness among educational institutions, and mitigate structural unemployment and wage inequality. Bankruptcy systems could disrupt this process.
The Next 'Big Short': COVID-19, Student Loan Discharge in Bankruptcy, and the SLABS Market
Describes significant negative effects on taxpayers' tax burdens, higher investor risk, the possibility of the SLABS market collapsing, and the stability of the US economy as a whole as well as on individual borrowers due to student loan defaults and bankruptcies.
External Considerations (Impact to Social Mobility)
The Problem with Public Colleges Going Tuition-Free
In an effort to increase access to higher education, proponents of tuition-free public colleges run the risk of escalating already-existing disparities by pushing minority and low-income students into less selective schools while preserving elite campuses for higher-class families. Robust bankruptcy systems could have similar affect.
Challenges in Restoring Economic Viability for Bankruptcy Filers
Inadequate Bankruptcy Knowledge
Saving up for Bankruptcy
Describes the phenomenon where many people and families choose not to file for bankruptcy relief even in the face of severe financial hardship, underscoring the need for a more thorough understanding of the factors influencing these decision-making processes.
Cracking the Code: An Empirical Analysis of Consumer Bankruptcy Outcomes
Discusses importance of comprehensive reform to address the problem of only about one-third of Chapter 13 cases resulting in discharge. The problem indicates significant negative outcomes, such as prolonged financial distress, failed debt rehabilitation, and challenges with creditor repayment. These issues are further exacerbated by the influence of local legal systems.
Access to Debt
Household Borrowing after Personal Bankruptcy
Highlights that even after filing for bankruptcy, households still have to deal with ongoing debt, high borrowing costs, and slow wealth accumulation. This suggests that debt relief by itself might not be sufficient to guarantee long-term financial security and calls for more research into potential solutions.
Importance of Accessible Bankruptcy Systems
Impact of Inaccessible Systems
(Not) Following the Leader in the Newest Personal Insolvency Laws in Uzbekistan and Kazakhstan
Discusses the shortcomings of the Kazakh personal insolvency law and urges reformers to align it with established best practices to support economic development, particularly for individual entrepreneurs. Must take into consideration crucial adjustments like introducing an affordable out-of-court debt relief option and protecting low-income debtors.
Fatal Flaws in Financing Personal Bankruptcy: The Curious Case of Russia in Comparative Context
Highlights need to address high access fees, reward trustees in low-value consumer bankruptcy cases, streamline procedures, take into account alternative models such as the English DRO for low-income debtors, and strike a balance between private management and governmental oversight in the personal bankruptcy system.
No Money down Bankruptcy
Describes the racial and regional disparities in the consumer bankruptcy system which are reflected in the "no money down" bankruptcy trend and other disparities in access to justice. These issues necessitates reform within the consumer bankruptcy system to address these disparities.
Importance of Accessibility (Procedural Simplicity and Low Cost)
Report on the Treatment of the Insolvency of Natural Persons.
Emphasises the need to create an efficient insolvency regime for natural persons, outlining its benefits and drawbacks as well as offering guidelines. Highlights accessibility as a crucial component.
Bankruptcy: The Case for Relief in an Economy of Debt
Criticises mainstream perspectives that treat bankruptcy as merely a debt collection tool and argues for bankruptcy's wider recognition in policy design globally, highlighting the crucial role of bankruptcy law as a social insurance mechanism against the risks of a debt-dependent economy.
Hurdles to debt relief for “no income no assets” debtors in Germany: A case study of failed consumer bankruptcy law reforms
Despite the fact that most people who are over-indebted do not have assets or income, only a small number of nations have successfully addressed this issue by enacting effective accessible debt relief programmes. Highlights the significance of a low-cost, easily accessible bankruptcy system for the majority in need.