and participants in many conferences and seminars for helpful comments and feedback. Five anonymous referees and the co-editor provided comments that led to substantial improvements in the paper.

and to Alexei Pozdnukhov at Replica for the ongoing cooperation. Alex Weinberg provided outstanding research assistance throughout this project. We also thank Stephen Eubank and the University of Virginia Biocomplexity Institute, Tim Bresnahan, Matt Jackson, and Mike Whinston for their insightful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w27374.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

and to Alexei Pozdnukhov at Replica for the ongoing cooperation. Alex Weinberg provided outstanding research assistance throughout this project. We also thank Stephen Eubank and the University of Virginia Biocomplexity Institute, Tim Bresnahan, Matt Jackson, and Mike Whinston for their insightful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w27374.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

We use credit report data for a representative sample of 35 million individuals over 2000-2016 to examine consumer financial distress in the United States. We show there are large, persistent geographic disparities in consumer financial distress, with low levels in the Upper Midwest and high levels in the Deep South. To better understand these patterns, we conduct a "movers" analysis that examines how financial distress evolves when people move to places with different levels of financial distress. For collections and default, there is only weak convergence following a move, suggesting these types of financial distress are not primarily caused by place-based factors (such as local economic conditions, loan supply, and state laws) but instead reflect person-based characteristics (such as financial literacy and risk preferences). In contrast, for personal bankruptcy, we find a sizable place-based effect, which is consistent with anecdotal evidence on how local legal factors influence the bankruptcy filing decision. Individual characteristics determine whether you get into financial distress, while place-based factors determine whether you use bankruptcy to get out. * The results in this paper were calculated (or derived) based on credit data provided by TransUnion, a global information solutions company, through a relationship with the Kilts Center for Marketing at The University of Chicago Booth School of Business. All views expressed and any errors contained in this paper are solely those of the authors.

and to Alexei Pozdnukhov at Replica for the ongoing cooperation. Alex Weinberg provided outstanding research assistance throughout this project. We also thank Stephen Eubank and the University of Virginia Biocomplexity Institute, Tim Bresnahan, Matt Jackson, and Mike Whinston for their insightful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w27374.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.