Abstract
Using an empirical analysis from Chapter 7 cases in five judicial districts, this article estimates the direct costs in typical small business Chapter 7s. The article finds that direct costs are lower than commonly portrayed, constituting a mean of 6.1% of total assets of 13.5% of total distributions. Costs did vary substantially across districts. Delay and case complexity were the largest determinant of bankruptcy costs. Most all of the cases involved only a negligible distribution for unsecured creditors.
Original language | English (US) |
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Pages (from-to) | 1207-1236 |
Number of pages | 28 |
Journal | Washington University Law Quarterly |
Volume | 75 |
Issue number | 3 |
State | Published - 1997 |