It has been a central assumption in bankruptcy policy debates that financially troubled persons faced with bankruptcy will respond to economic incentives and disincentives. Two provisions of the Bankruptcy Code (Chapters 7 and 13) are most commonly used by individual debtors. Under Chapter 7 debtors agree to give up all their property (n excess of state-determined exemptions) to a trustee for sale and distribution to creditors. Under Chapter 13 debtors keep all their property but agree to pay all or part of their debts over three to five years. This empirical study of fifteen hundred consumers in three states explores whether economic incentives and disincentives are in fact the chief factors influencing choice of chapter. The analysis demonstrates that while economic factors play a part, noneconomic factors are also significant, among them intra- and interstate migration, marital status, self-employment, state of residence, and local legal culture. We conclude that to explore fully how individual decisions are made, the simplistic economic model must be replaced by a more sophisticated model that accounts for both economic and noneconomic factors.

Throughout the 19th century, lawyers in France were deeply involved in political action to pursue an overriding goal–to become recognized as spokesmen for the public. This strategy governed their history; it explains their brilliant social ascent and their subsequent slow decline. As long as the conflict between state and civil society raged, lawyers were able to we assets–political mobilization, the power of the word, the esteem enjoyed by law–which had allowed them faithfully to embody public opinion in its struggle to limit state powers. From this embodiment of public ideals they derived independence, prestige, and a dominant position in the state. But when the nature of the political regime ceased to be a bone of contention and when public life became organized around other cleavages, lawyers were gradually deprived of their representative function. This marked the beginning of a social decline that became visible between the two world wars and lasted until the 1950s.