Citations (1)



Get in Line: Chapter 11 Restructuring in Crowded Bankruptcy Courts

Benjamin Charles Iverson

Northwestern University - Kellogg School of Management

March 20, 2014

This paper tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act as an exogenous shock to caseloads, I find that as bankruptcy judges become busier they allow more firms to reorganize and liquidate fewer firms. Firms that reorganize in busy courts spend longer in bankruptcy, while firms that are dismissed from busy courts are more likely to re-file for bankruptcy within three years of their original filing. In addition, commercial banks report higher charge-offs on business lending when bankruptcy caseload increases.

Number of Pages in PDF File: 63

Keywords: Financial distress, bankruptcy, Chapter 11

JEL Classification: G30, G33, G34, K22

Open PDF in Browser Download This Paper

Date posted: October 3, 2012 ; Last revised: April 2, 2014

Suggested Citation

Iverson, Benjamin Charles, Get in Line: Chapter 11 Restructuring in Crowded Bankruptcy Courts (March 20, 2014). Available at SSRN: http://ssrn.com/abstract=2156045 or http://dx.doi.org/10.2139/ssrn.2156045

Contact Information

Benjamin Charles Iverson (Contact Author)
Northwestern University - Kellogg School of Management ( email )
Evanston, IL 60208
United States
Feedback to SSRN

Paper statistics
Abstract Views: 1,040
Downloads: 219
Download Rank: 103,271
Citations:  1

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.219 seconds