Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol, Emmanuelle / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

4 Issues per year


IMPACT FACTOR 2017: 0.306
5-year IMPACT FACTOR: 0.492

CiteScore 2017: 0.50

SCImago Journal Rank (SJR) 2017: 0.414
Source Normalized Impact per Paper (SNIP) 2017: 0.531

Online
ISSN
1935-1682
See all formats and pricing
More options …
Volume 10, Issue 1

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Chapter 7 or 13: Are Client or Lawyer Interests Paramount?

Lars Lefgren / Frank L McIntyre / Michelle Miller
Published Online: 2010-09-13 | DOI: https://doi.org/10.2202/1935-1682.2512

Abstract

Households often rely on professionals with specialized knowledge to make important financial decisions. In many cases, the professional’s financial interests are at odds with those of the client. We explore this problem in the context of personal bankruptcy. OLS, fixed effects, and IV estimates all show that attorneys play a central role in determining whether households file under Chapter 7 or Chapter 13 of the bankruptcy code. We present evidence suggesting that some attorneys maximize profits by steering households into Chapter 13 bankruptcy even when the households’ objective financial benefits are low and the probability of case dismissal is high. An attorney-induced Chapter 13 filing increases household legal fees and reduces the probability of long-term debt relief.

Keywords: consumer bankruptcy; principal agent problems

About the article

Published Online: 2010-09-13


Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 10, Issue 1, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.2512.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Alycia Chin, Taya R. Cohen, and Mark R. Lindblad
Journal of Consumer Affairs, 2018
[2]
Donald D. Hackney, Matthew Q. McPherson, Daniel Friesner, and Candice Correia
International Journal of Social Ecology and Sustainable Development, 2014, Volume 5, Number 1, Page 58
[3]
Mark R. Lindblad, Roberto G. Quercia, Melissa B. Jacoby, Ling Wang, and Huifang Zhao
Housing Policy Debate, 2015, Volume 25, Number 1, Page 41
[4]
John H. Beck, Donald D. Hackney, John Hackney, and Matthew Q. McPherson
Review of Social Economy, 2014, Volume 72, Number 2, Page 186

Comments (0)

Please log in or register to comment.
Log in