Description: Evaluating the efficiency of a bankruptcy reform

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Evaluating the efficiency of a bankruptcy reform

The current financial crisis has pushed many firms to the brink of bankruptcy. A key policy question is thus whether bankruptcy laws are efficient, in the sense of allowing better firms to reorganize while liquidating unviable firms. The sixth in...

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Bibliographic Details
Main Authors:	Gine, Xavier, Love, Inessa
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	BANK POLICY BANKRUPTCY BANKRUPTCY CODES BANKRUPTCY LAWS BANKRUPTCY PROCEDURE BANKRUPTCY PROCESS BANKRUPTCY REFORM BANKRUPTCY SYSTEM COSTS OF BANKRUPTCY CREDITORS DEBT DEBT LEVELS DEBT RELIEF DEBT SERVICE DEBTORS EFFECTIVE BANKRUPTCY FILING FOR BANKRUPTCY FILING FOR LIQUIDATION FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL TRANSACTIONS FUNDS TO CREDITORS ILLIQUIDITY INEFFICIENT LIQUIDATIONS INSURANCE LEGISLATION LIQUIDATION LIQUIDATION PROCESS MACROECONOMIC CONDITIONS MANDATORY LIQUIDATION MICROENTERPRISES NEGOTIATIONS NUMBER OF BANKRUPTCIES REORGANIZATION REORGANIZATION PLANS REORGANIZATION PROCEEDING REORGANIZATION PROCEEDINGS REORGANIZATION PROCESS RETURN RETURNS SALE OF ASSETS TRANSACTION TRANSACTION COSTS VIABLE BUSINESSES
Online Access:	http://documents.worldbank.org/curated/en/2009/05/12091318/evaluating-efficiency-bankruptcy-reform http://hdl.handle.net/10986/10253

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Summary:	The current financial crisis has pushed many firms to the brink of bankruptcy. A key policy question is thus whether bankruptcy laws are efficient, in the sense of allowing better firms to reorganize while liquidating unviable firms. The sixth in impact series presents lessons from a reform in Colombia that achieved this objective.