Residential housing and personal bankruptcy

Abstract

Bankruptcy filings are on the rise, and millions of households have either lost their homes to foreclosure or are on the verge of losing them. One subject of debate amid this rising number of bankruptcies is how personal bankruptcy laws deal with residential housing. This subject centers on two main issues: First, how do personal bankruptcy laws affect the availability of mortgages and the terms on which borrowers obtain mortgages? Second, how do personal bankruptcy filings affect the outcome of mortgage foreclosures? In "Residential Housing and Personal Bankruptcy," Wenli Li discusses these questions and examines the economic literature to shed some light on the legislative and policy debates that are likely to recur after the current crisis is over.