IDEAS home Printed from https://ideas.repec.org/a/kap/jcopol/v38y2015i3p357-374.html
   My bibliography  Save this article

Consumer Insolvency: The Linkage Between the Fresh Start, Collective Proceedings, and the Access to Debt Adjustment

Author

Listed:
  • Tuula Linna

Abstract

The term “fresh start” is widely used. This article asks how fresh the start needs to be in order to offer real rehabilitation to the debtor. A fresh start where the debtor does not restore the control of his or her economic situation has not achieved the objective of debt adjustment. Sometimes, however, the poor economic situation of the debtor after debt adjustment is not a sign of unsuccessful insolvency legislation but a consequence of more general social policy problems in society. In this paper, the hypothesis is set that the fresh start requires quite extensive and simultaneous discharge of debts in collective proceedings. The collectivity of the proceedings is the procedural side of the coverage of the debts. A high coverage of debts means usually a strict entry control by the court as a gatekeeper. The court investigates the reasons behind the indebtedness. The downside of strict control is the drastic sorting out of the debtors. A relatively open assess to debt adjustment is possible in systems where plenty of debts have been excluded from debt adjustment by the legislator (protected debts). The weak point of these systems is that the fresh start is not achieved because the debtor has not enough disposable income to pay the protected debts. In this paper, a debt adjustment model is suggested that has high coverage of debts where rescheduling is used as a means of debt arrangement concerning the protected debts. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Tuula Linna, 2015. "Consumer Insolvency: The Linkage Between the Fresh Start, Collective Proceedings, and the Access to Debt Adjustment," Journal of Consumer Policy, Springer, vol. 38(3), pages 357-374, September.
    • Handle: RePEc:kap:jcopol:v:38:y:2015:i:3:p:357-374
    DOI: 10.1007/s10603-015-9287-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10603-015-9287-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10603-015-9287-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Johanna Niemi, 2012. "Consumer Insolvency in the European Legal Context," Journal of Consumer Policy, Springer, vol. 35(4), pages 443-459, December.
    2. Iain Ramsay, 2012. "Between Neo-Liberalism and the Social Market: Approaches to Debt Adjustment and Consumer Insolvency in the EU," Journal of Consumer Policy, Springer, vol. 35(4), pages 421-441, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    2. D. Burton, 2021. "Consumer Debt Prevention and Discharge in the Arabian Gulf," Journal of Consumer Policy, Springer, vol. 44(1), pages 21-42, March.
    3. Tomasz Korol, 2024. "Multi-factor fuzzy sets decision system forecasting consumer insolvency risk," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 51(3), pages 279-302, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcus Drometer & Katrin Oesingmann, 2015. "Household Debt and the Importance of Effective Private Insolvency Laws," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(2), pages 63-66, 08.
    2. Michel Robe & Eva Maria Steiger, 2016. "Insolvency and its Consequences: A Historical Perspective," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(4), pages 35-40, 02.
    3. repec:ces:ifodic:v:13:y:2016:i:4:p:19191585 is not listed on IDEAS
    4. Marcus Drometer & Katrin Oesingmann, 2015. "Household Debt and the Importance of Effective Private Insolvency Laws," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(02), pages 63-66, August.
    5. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    6. György Walter & Jens Valdemar Krenchel, 2021. "The Leniency of Personal Bankruptcy Regulations in the EU Countries," Risks, MDPI, vol. 9(9), pages 1-20, September.
    7. Michel Robe & Eva Maria Steiger, 2016. "Insolvency and its Consequences: A Historical Perspective," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(04), pages 35-40, February.
    8. repec:ces:ifodic:v:13:y:2015:i:2:p:19166299 is not listed on IDEAS
    9. Irina Domurath, 2018. "Book Review: Personal Insolvency in the 21st Century – A Comparative Analysis of the US and Europe by Iain Ramsay," Journal of Consumer Policy, Springer, vol. 41(1), pages 89-93, March.
    10. Nadja König, 2016. "Personal Insolvency Dynamics in Germany and the UK -- A SUR-TAR Approach," Macroeconomics and Finance Series 201602, University of Hamburg, Department of Socioeconomics.
    11. Teresa Buchen & Marcus Drometer & Katrin Oesingmann & Timo Wollmershäuser, 2016. "Managing Household Debt in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(1), pages 12-16, April.
    12. Teresa Buchen & Marcus Drometer & Katrin Oesingmann & Timo Wollmershäuser, 2016. "Managing Household Debt in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 12-16, April.
    13. Oliver Falck & Siegfried Schönherr, 2016. "An Economic Reform Agenda for Croatia: a comprehensive economic reform package prepared for the Croatian Statehood Foundation," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 70.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jcopol:v:38:y:2015:i:3:p:357-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.