Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Bureau of Labor Statistics > Office of Survey Methods and Research > Publications > Browse Research Papers

Duration Dependence in Personal Bankruptcy

Jonathan D. Fisher

Abstract

This paper represents the first use of the Panel Study of Income Dynamics to examine whether there is duration dependence in personal bankruptcy. The results suggest that there is positive duration dependence in the first three spell-years, followed by negative duration dependence. Another interesting finding is that the median financial benefit for the filers in the year they filed is less than the median benefit in the year before they filed. This indicates that not all households file for bankruptcy when its financial benefit is largest. These findings suggest that some filers avoid bankruptcy even when bankruptcy is financially beneficial.