Posted by Todd Zywicki: Posner-Becker on Bankruptcy Reform: Posner provides straightforward explanation of the Bankruptcy Reform Legislation, echoed by Becker. A useful overview of the basic economics involved, and along the lines of which I testified in more depth in the Senate Judiciary Committee [1]I haven't said before.
Je also fails to note the empirical evidence that demonstrates the trivial payouts made to unsecured creditors in chapter 7 (about 95% of cases pay nothing, and the others generally only pay a couple of pennies on the dollar), so that the model that contemplates an actual surrender of nonexempt property in chapter 7 is not really a very realistic description of how the world actually operates in practice. References 1. http://judiciary.senate.gov/testimony.cfm?id=1381&wit_id=3997 _______________________________________________ Volokh mailing list [email protected] http://highsorcery.com/cgi-bin/mailman/listinfo/volokh
