%0 Report
        %A Bruze, Gustaf
%A Hilsløv, Alexander Kjær
%A Maibom, Jonas
        %T The Long-Run Effects of Individual Debt Relief
        %D 2024
        %8 2024 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17047
        %U https://www.iza.org/publications/dp17047
        %X Individuals with extensive debt may be granted debt relief in court. We provide a comprehensive evaluation of the Danish debt relief program with data from court records linked to nationwide register data. Using event-study methods and quasi-random assignment of applicants to court trustees with varying admission rates, we show that debt relief leads to a large increase in earned income, employment, assets, real estate, secured debt, home ownership, and wealth that persists for more than 25 years after a court ruling. The net transition of workers into employment accounts for two thirds of the increase in earned income.
        %K household finance
%K personal bankruptcy
%K debt relief