Saving Your Home in Chapter 13 Bankruptcy
NBER Working Paper No. 14179
This paper examines how filing for bankruptcy under Chapter 13 helps financially distressed debtors save their homes. We develop a model of debtors’ decisions to default on their mortgages and file for bankruptcy under Chapter 13 and evaluate the model using new data on Chapter 13 bankruptcy filers. We also examine the effect of allowing bankruptcy judges to reduce debtors’ mortgage payments, i.e., introducing “cram-down” of mortgages in Chapter 13.
This paper was revised on December 5, 2011
Published: "Saving Your Home in Chapter 13 Bankruptcy," with Ning Zhu. NBER working paper 14179. Journal of Legal Studies, vol. 39:1, pp. 33-61, January 2010
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