This book explores the rapidly evolving law of individual insolvency. As consumer borrowing and spending play a greater and greater role in fueling worldwide economic growth, more and more countries are dealing with the casualties of the "democratization of credit" and the "open credit economy." This book explores the struggles that led to the implementation and continuous revision of consumer insolvency law throughout much of Europe in the 1990s and early 2000s. Drawing on both primary sources of formal law and empirical studies of the law in action, this book offers an overview of how the law of consumer "overindebtedness" has played out in the last two decades in the United States and Europe and where it appears to be headed today. While the focus here is on law and practice, the questions for discussion at the end of each chapter might spawn deeper theoretical and policy explorations of the ambivalent relationship of societies to their financially overextended consumers and the ambiguous state of contract law in the consumer context in the 21st century. Chapter 1 sets the stage by introducing the challenges and methodology of a comparative approach to this area of the law. Chapter 2 explores the varying form and role of "credit counseling" and pre-bankruptcy negotiation with creditors in the various systems presented. Chapters 3 and 4 compare and contrast the form and function of the formal consumer insolvency systems in the United States, France, Germany, Austria, England & Wales, the Netherlands, Sweden, Belgium, and Luxembourg. This book is designed for use either in a comparative law course, using consumer insolvency systems to illustrate many of the challenges of comparative law analysis, or in a basic bankruptcy course, using a variety of European approaches and their development over time to enlighten and challenge students' appreciation of the operation of the U.S. system. This book is part of the Comparative Law Series, edited by Michael L. Corrado, Arch T. Allen Distinguished Professor of Law, UNC School of Law. "Each chapter is punctuated with thoughtful discussion questions that will spark debate about the merits of various countries' solutions to the problem of consumer debt." -- Harvard Law Review "Throughout the book Kilborn employs the welcoming tone of a seasoned and passionate educator, with a touch of humor, at the same time appealing to the sense of certainty that law students so often crave...Kilborn is to be congratulated." -- The Law and Politics Book Review

This article discusses comparative consumer bankruptcy in the context of the international spread of consumer credit capitalism and its accompanying social cost, overindebtedness. The article outlines the contours of regulation of credit markets and overindebtedness within Europe, the influence of the U.S. idea of the quot;fresh startquot; on recent changes in European debt-adjustment laws and continuing contrasts with the U.S. approach to bankruptcy. As consumer debt increases in Europe and elsewhere, these differences between continental European and North American approaches to bankruptcy might be explained by the path-dependence of legal institutions, cultural differences, or the political influence of interest groups. The article is skeptical about cultural explanations of difference and suggests the value of an analysis that is sensitive to political economy and history. It also argues that future comparative research should focus on overindebtedness rather than bankruptcy.

After a long period of prosperity and steady economic growth, the world's leading economies are now in crisis, and although there will be debate about its origins, the scale and seriousness of the crisis is in no doubt. There is also no doubt that excessive amounts of consumer credit, allied to a weak understanding of how globalised credit markets might react to a crisis, have played a significant part. This book, which is primarily about credit, debt and the trouble they have led to, is written by authors who have specialised in researching into over-indebtedness, that is, situations in which an individual's debt burden has become overwhelming. For these authors the plight of individuals is a primary concern, but the wider issue is how credit is used and how it changes societies. The essays in this volume, addressing topics which are fundamental to our understanding of the current crisis, range widely across the whole sector of consumer finance, including mortgages, 'credit-binges', the regulation of consumer lending, insolvency, repayment plans, debt counselling and much more besides. The conclusions drawn from the book are equally wide-ranging, but above all the lesson learned from these essays is that the financialisation of contemporary life ensures that issues of the appropriate role of credit remain of critical importance in society.

In this paper, I draw on the insights of behavioral economics to explain the rise of consumer debt and analyze the potential of several emerging European consumer debt relief systems in preventing excessive consumer borrowing. First, I submit that behavioral economics offers compelling explanations for some of the reasons why consumers get themselves into financial trouble despite the obvious dangers of over-borrowing and over-spending. Consequently, I propose that behavioral economics might also indicate which legislative models of consumer debt relief might be most effective, not only in treating, but also in combating the growing problem of excessive consumer debt. Drawing on my recent studies of the operation of the new consumer debt relief systems in Germany, France, Belgium, and Luxembourg (and my initial observations on the system in the Netherlands), I argue that some aspects of these systems are likely to be more effective - and others may even be counterproductive - in achieving the often-stated European goals of imparting positive lessons to consumers about personal responsibility and payment morality. At least from the perspective of behavioral economics, the German system seems to emerge as the most potentially successful system, although other systems seem to be moving in the right direction in many areas.

This study compares the insolvency regimes currently in place or likely to be adopted in the foreseeable future in various countries worldwide.

Modern legal systems have two basic alternatives in providing relief for over-committed consumers. Where the consumer is seriously insolvent and owes money to many creditors, a collective solution to debtor's problems is required. This work focuses on such a solution.

This book provides a comparative appraisal of global developments in the area of consumer bankruptcy and overindebtedness.