Saving Viable Businesses : The Effect of Insolvency Reform

The 2008 financial crisis and consequent rise in corporate insolvencies highlight the clear need for efficient bankruptcy systems to liquidate unviable firms and reorganize viable ones and to do so in a way that maximizes the proceeds for creditors...

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Main Author:	Klapper, Leora
Format:	Viewpoint
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTANCY ACCOUNTS PAYABLE ALTERNATIVE TO LIQUIDATION ASSET SALES BANK LOANS BANKRUPTCY BANKRUPTCY ABUSE BANKRUPTCY CODE BANKRUPTCY COSTS BANKRUPTCY FILINGS BANKRUPTCY INSTITUTE BANKRUPTCY LAW BANKRUPTCY LAW REFORM BANKRUPTCY LAWS BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY RATES BANKRUPTCY REFORM BANKRUPTCY REGIMES BANKRUPTCY SYSTEM BANKRUPTCY SYSTEMS BARRIER BORROWER BORROWER BEHAVIOR BORROWING BUSINESS BANKRUPTCY COLLATERAL COMMERCIAL BANKS CONSUMER PROTECTION CORPORATE BANKRUPTCIES COST OF BANKRUPTCY COST OF DEBT CREDIBILITY CREDIT CARD CREDIT CARD DEBT CREDIT CARDS CREDIT DECISIONS CREDITOR CREDITOR PROTECTION CREDITORS DEBT DEBT RECOVERY DEBT RESTRUCTURING DEBTOR DEBTORS ECONOMICS EFFECT OF INSOLVENCY EFFECTIVE INSOLVENCY ENFORCEMENT MECHANISMS ESTATE FAILURE RATE FAILURE RATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FORECLOSURE IMPACT OF DEBT INCOME INCOME GROUP INDIVIDUAL BANKRUPTCY INSOLVENCY FRAMEWORKS INSOLVENCY LAWS INSOLVENCY REFORM INSOLVENCY REFORMS INSOLVENCY REGIMES INSOLVENT INSOLVENT FIRMS INSURANCE INTEREST EXPENSE INTEREST RATES INTERNATIONAL DEVELOPMENT INVESTMENT CLIMATE JUDICIAL ENFORCEMENT LEGAL FRAMEWORK LEGAL REFORM LENDERS LEVEL OF CREDIT LIMITED LIABILITY LIQUIDATION LIQUIDATION REORGANIZATION LIQUIDATIONS LOAN LOAN PORTFOLIOS LOAN REPAYMENT LONG-TERM DEBT MINIMUM CAPITAL REQUIREMENTS MORTGAGE NONPERFORMING LOANS PERSONAL BANKRUPTCY PERSONAL BANKRUPTCY LAWS PERSONAL LIABILITY POLITICAL ECONOMY PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY QUALITY OF BANKS REORGANIZATION REORGANIZATION PLANS REORGANIZATION PROCESS REORGANIZATIONS REPAYMENT REPAYMENT RATES REPAYMENTS SAVINGS SUPPLY OF CREDIT VIABLE BUSINESSES WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2011/09/16198955/saving-viable-businesses-effect-insolvency-reform http://hdl.handle.net/10986/11056

id	okr-10986-11056
recordtype	oai_dc
spelling	okr-10986-110562021-04-23T14:02:53Z Saving Viable Businesses : The Effect of Insolvency Reform Klapper, Leora ACCOUNTANCY ACCOUNTS PAYABLE ALTERNATIVE TO LIQUIDATION ASSET SALES BANK LOANS BANKRUPTCY BANKRUPTCY ABUSE BANKRUPTCY CODE BANKRUPTCY COSTS BANKRUPTCY FILINGS BANKRUPTCY INSTITUTE BANKRUPTCY LAW BANKRUPTCY LAW REFORM BANKRUPTCY LAWS BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY RATES BANKRUPTCY REFORM BANKRUPTCY REGIMES BANKRUPTCY SYSTEM BANKRUPTCY SYSTEMS BARRIER BORROWER BORROWER BEHAVIOR BORROWING BUSINESS BANKRUPTCY COLLATERAL COMMERCIAL BANKS CONSUMER PROTECTION CORPORATE BANKRUPTCIES COST OF BANKRUPTCY COST OF DEBT CREDIBILITY CREDIT CARD CREDIT CARD DEBT CREDIT CARDS CREDIT DECISIONS CREDITOR CREDITOR PROTECTION CREDITORS DEBT DEBT RECOVERY DEBT RESTRUCTURING DEBTOR DEBTORS ECONOMICS EFFECT OF INSOLVENCY EFFECTIVE INSOLVENCY ENFORCEMENT MECHANISMS ESTATE FAILURE RATE FAILURE RATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FORECLOSURE IMPACT OF DEBT INCOME INCOME GROUP INDIVIDUAL BANKRUPTCY INSOLVENCY FRAMEWORKS INSOLVENCY LAWS INSOLVENCY REFORM INSOLVENCY REFORMS INSOLVENCY REGIMES INSOLVENT INSOLVENT FIRMS INSURANCE INTEREST EXPENSE INTEREST RATES INTERNATIONAL DEVELOPMENT INVESTMENT CLIMATE JUDICIAL ENFORCEMENT LEGAL FRAMEWORK LEGAL REFORM LENDERS LEVEL OF CREDIT LIMITED LIABILITY LIQUIDATION LIQUIDATION REORGANIZATION LIQUIDATIONS LOAN LOAN PORTFOLIOS LOAN REPAYMENT LONG-TERM DEBT MINIMUM CAPITAL REQUIREMENTS MORTGAGE NONPERFORMING LOANS PERSONAL BANKRUPTCY PERSONAL BANKRUPTCY LAWS PERSONAL LIABILITY POLITICAL ECONOMY PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY QUALITY OF BANKS REORGANIZATION REORGANIZATION PLANS REORGANIZATION PROCESS REORGANIZATIONS REPAYMENT REPAYMENT RATES REPAYMENTS SAVINGS SUPPLY OF CREDIT VIABLE BUSINESSES WORLD DEVELOPMENT INDICATORS The 2008 financial crisis and consequent rise in corporate insolvencies highlight the clear need for efficient bankruptcy systems to liquidate unviable firms and reorganize viable ones and to do so in a way that maximizes the proceeds for creditors, shareholders, employees, and other stakeholders. This note summarizes the empirical literature on the effect of insolvency reforms on economic and financial activity. Overall, research suggests that effective reforms increase timely repayments, reduce the cost of credit, and lower the rate of liquidation among distressed firms. 2012-08-13T14:00:46Z 2012-08-13T14:00:46Z 2011-09 http://documents.worldbank.org/curated/en/2011/09/16198955/saving-viable-businesses-effect-insolvency-reform http://hdl.handle.net/10986/11056 English Viewpoint: Public Policy for the Private Sector; Note No. 328 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTANCY ACCOUNTS PAYABLE ALTERNATIVE TO LIQUIDATION ASSET SALES BANK LOANS BANKRUPTCY BANKRUPTCY ABUSE BANKRUPTCY CODE BANKRUPTCY COSTS BANKRUPTCY FILINGS BANKRUPTCY INSTITUTE BANKRUPTCY LAW BANKRUPTCY LAW REFORM BANKRUPTCY LAWS BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY RATES BANKRUPTCY REFORM BANKRUPTCY REGIMES BANKRUPTCY SYSTEM BANKRUPTCY SYSTEMS BARRIER BORROWER BORROWER BEHAVIOR BORROWING BUSINESS BANKRUPTCY COLLATERAL COMMERCIAL BANKS CONSUMER PROTECTION CORPORATE BANKRUPTCIES COST OF BANKRUPTCY COST OF DEBT CREDIBILITY CREDIT CARD CREDIT CARD DEBT CREDIT CARDS CREDIT DECISIONS CREDITOR CREDITOR PROTECTION CREDITORS DEBT DEBT RECOVERY DEBT RESTRUCTURING DEBTOR DEBTORS ECONOMICS EFFECT OF INSOLVENCY EFFECTIVE INSOLVENCY ENFORCEMENT MECHANISMS ESTATE FAILURE RATE FAILURE RATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FORECLOSURE IMPACT OF DEBT INCOME INCOME GROUP INDIVIDUAL BANKRUPTCY INSOLVENCY FRAMEWORKS INSOLVENCY LAWS INSOLVENCY REFORM INSOLVENCY REFORMS INSOLVENCY REGIMES INSOLVENT INSOLVENT FIRMS INSURANCE INTEREST EXPENSE INTEREST RATES INTERNATIONAL DEVELOPMENT INVESTMENT CLIMATE JUDICIAL ENFORCEMENT LEGAL FRAMEWORK LEGAL REFORM LENDERS LEVEL OF CREDIT LIMITED LIABILITY LIQUIDATION LIQUIDATION REORGANIZATION LIQUIDATIONS LOAN LOAN PORTFOLIOS LOAN REPAYMENT LONG-TERM DEBT MINIMUM CAPITAL REQUIREMENTS MORTGAGE NONPERFORMING LOANS PERSONAL BANKRUPTCY PERSONAL BANKRUPTCY LAWS PERSONAL LIABILITY POLITICAL ECONOMY PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY QUALITY OF BANKS REORGANIZATION REORGANIZATION PLANS REORGANIZATION PROCESS REORGANIZATIONS REPAYMENT REPAYMENT RATES REPAYMENTS SAVINGS SUPPLY OF CREDIT VIABLE BUSINESSES WORLD DEVELOPMENT INDICATORS
spellingShingle	ACCOUNTANCY ACCOUNTS PAYABLE ALTERNATIVE TO LIQUIDATION ASSET SALES BANK LOANS BANKRUPTCY BANKRUPTCY ABUSE BANKRUPTCY CODE BANKRUPTCY COSTS BANKRUPTCY FILINGS BANKRUPTCY INSTITUTE BANKRUPTCY LAW BANKRUPTCY LAW REFORM BANKRUPTCY LAWS BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY RATES BANKRUPTCY REFORM BANKRUPTCY REGIMES BANKRUPTCY SYSTEM BANKRUPTCY SYSTEMS BARRIER BORROWER BORROWER BEHAVIOR BORROWING BUSINESS BANKRUPTCY COLLATERAL COMMERCIAL BANKS CONSUMER PROTECTION CORPORATE BANKRUPTCIES COST OF BANKRUPTCY COST OF DEBT CREDIBILITY CREDIT CARD CREDIT CARD DEBT CREDIT CARDS CREDIT DECISIONS CREDITOR CREDITOR PROTECTION CREDITORS DEBT DEBT RECOVERY DEBT RESTRUCTURING DEBTOR DEBTORS ECONOMICS EFFECT OF INSOLVENCY EFFECTIVE INSOLVENCY ENFORCEMENT MECHANISMS ESTATE FAILURE RATE FAILURE RATES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DISTRESS FORECLOSURE IMPACT OF DEBT INCOME INCOME GROUP INDIVIDUAL BANKRUPTCY INSOLVENCY FRAMEWORKS INSOLVENCY LAWS INSOLVENCY REFORM INSOLVENCY REFORMS INSOLVENCY REGIMES INSOLVENT INSOLVENT FIRMS INSURANCE INTEREST EXPENSE INTEREST RATES INTERNATIONAL DEVELOPMENT INVESTMENT CLIMATE JUDICIAL ENFORCEMENT LEGAL FRAMEWORK LEGAL REFORM LENDERS LEVEL OF CREDIT LIMITED LIABILITY LIQUIDATION LIQUIDATION REORGANIZATION LIQUIDATIONS LOAN LOAN PORTFOLIOS LOAN REPAYMENT LONG-TERM DEBT MINIMUM CAPITAL REQUIREMENTS MORTGAGE NONPERFORMING LOANS PERSONAL BANKRUPTCY PERSONAL BANKRUPTCY LAWS PERSONAL LIABILITY POLITICAL ECONOMY PRIVATE SECTOR DEVELOPMENT PUBLIC POLICY QUALITY OF BANKS REORGANIZATION REORGANIZATION PLANS REORGANIZATION PROCESS REORGANIZATIONS REPAYMENT REPAYMENT RATES REPAYMENTS SAVINGS SUPPLY OF CREDIT VIABLE BUSINESSES WORLD DEVELOPMENT INDICATORS Klapper, Leora Saving Viable Businesses : The Effect of Insolvency Reform
relation	Viewpoint: Public Policy for the Private Sector; Note No. 328
description	The 2008 financial crisis and consequent rise in corporate insolvencies highlight the clear need for efficient bankruptcy systems to liquidate unviable firms and reorganize viable ones and to do so in a way that maximizes the proceeds for creditors, shareholders, employees, and other stakeholders. This note summarizes the empirical literature on the effect of insolvency reforms on economic and financial activity. Overall, research suggests that effective reforms increase timely repayments, reduce the cost of credit, and lower the rate of liquidation among distressed firms.
format	Publications & Research :: Viewpoint
author	Klapper, Leora
author_facet	Klapper, Leora
author_sort	Klapper, Leora
title	Saving Viable Businesses : The Effect of Insolvency Reform
title_short	Saving Viable Businesses : The Effect of Insolvency Reform
title_full	Saving Viable Businesses : The Effect of Insolvency Reform
title_fullStr	Saving Viable Businesses : The Effect of Insolvency Reform
title_full_unstemmed	Saving Viable Businesses : The Effect of Insolvency Reform
title_sort	saving viable businesses : the effect of insolvency reform
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2011/09/16198955/saving-viable-businesses-effect-insolvency-reform http://hdl.handle.net/10986/11056
_version_	1764415360804585472

Saving Viable Businesses : The Effect of Insolvency Reform

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