Debtor Careers Before and After Consumer Insolvency. Is there a "Fresh Start"?

This project focuses on personal bankruptcies in Austria. Consumer insolvency proceedings enable debtors with unsustainable debts to obtain debt discharge under certain conditions. Given the large role private debt plays in modern society, consumer insolvency proceedings are an important element of social and economic policy with effects on multiple outcomes such as health, entrepreneurial activity, and labour market participation. Yet, there is surprisingly little high-quality evidence on the causes and consequences of personal bankruptcy for countries other than the USA. We address this research gap by focusing on two questions: first, which life trajectories (e.g., in terms of employment, income and marital status) precede consumer insolvencies? Second, how do these trajectories continue after personal bankruptcies are declared?