The Fresh-Start Policy in Bankruptcy Law

The Legal Road to Replicating Silicon Valley

“…If no 'fresh start' is available to exit bankruptcy, then entrepreneurs get only one chance to fail, because they will be unable to raise pre-seed funds in circumstances where all their assets must be handed over to creditors. Conversely, a readily available 'fresh start' means that failed entrepreneurs can be rapidly rehabilitated (Jackson, 1985;Georgakopoulos, 2002).…”

Making Firms Liable for Consumers’ Mistaken Beliefs: Applications to the U.S. Mortgage and Credit Card Markets

“…With small modifications, this model can be used for other applications. For example, Jackson () argues that the reason to allow debtors to discharge their debts in bankruptcy is to mitigate the effects of impulsive behavior or flawed heuristics (both could be modeled by the same x 0 and x p divergence). The liability cost L then becomes the inability of the creditor to collect on debt discharged in bankruptcy.…”

Socijalni i pravno-ekonomski aspekti uvođenja potrošačkog stečaja

“…U skladu s navedenim, američka pravna teorija smatra da je funkcija potrošačkog stečaja, barem djelomično, socijalnoga karaktera (Adler, Polak i Schwartz, 2000.;Jacoby, 2001. ; Hynes, 2002.;Feibelman, 2005.). Sukladno takvim razmišljanjima, cilj je potrošačkog stečaja omogućavanje socijalne sigurnosti u situaciji nesposobnosti za plaćanje te neočekivanih izdataka u budžetu potroša-ča (Posner, 1977.;Hirsch, 1994.;Posner, 1995.;Ramsay, 1997.).…”