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Crisis and Bankruptcy: The Mediating Role of State Law, 1920–1932

  • MARY ESCHELBACH HANSEN (a1) and BRADLEY A. HANSEN (a2)
Abstract

The onset of the Great Depression did not spark a surge in personal bankruptcy. For debtors in default, state garnishment law played a significant role in the decision to file for bankruptcy. Only states that made it easy to garnish a debtor's wages experienced significant increases in bankruptcy as a consequence of the Depression.

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The Journal of Economic History
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