Crisis and Bankruptcy: The Mediating Role of State Law, 1920–1932

Mary Eschelbach Hansen and Bradley A. Hansen

The Journal of Economic History, 2012, vol. 72, issue 2, 448-468

Abstract: The onset of the Great Depression did not spark a surge in personal bankruptcy. For debtors in default, state garnishment law played a significant role in the decision to file for bankruptcy. Only states that made it easy to garnish a debtor's wages experienced significant increases in bankruptcy as a consequence of the Depression.

Date: 2012
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