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- W3170478977 abstract "Mortgage cramdown enabled bankruptcy judges to discharge the underwater portion of a mortgage during Chapter 13 bankruptcy before the Supreme Court disallowed this practice in 1993. We exploit the random assignment of cases to judges to quantify the ex-post effects of Chapter 13 bankruptcy over the period from 1989 to 1993. We find that a successful Chapter 13 filing in a cramdown court substantially decreases the five-year foreclosure rate, the propensity to move, and the crime rate. Our results suggest that principal write-down considerably reduces homeowner’s distress." @default.
- W3170478977 created "2021-06-22" @default.
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- W3170478977 date "2020-01-01" @default.
- W3170478977 modified "2023-10-14" @default.
- W3170478977 title "The Effect of Principal Reduction on Household Distress: Evidence from Mortgage Cramdown" @default.
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- W3170478977 doi "https://doi.org/10.2139/ssrn.3700190" @default.
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