Publication Type
Blog Post
Version
acceptedVersion
Publication Date
6-2025
Abstract
Insolvency law plays an essential role in the real economy. From an ex ante perspective, that is, before a situation of insolvency arises, the design of insolvency law affects how debtors and creditors make decisions. For instance, if creditors believe that an insolvency system does not protect their rights or it does not help them maximize their recoveries if their debtors become insolvent, they will rationally become reluctant to extend credit. Therefore, an unattractive insolvency regime for creditors will harm firms’ access to finance and the promotion of economic growth. Similarly, an insolvency system that severely punishes honest but unfortunate debtors may discourage individuals from starting a business or taking risks.
Discipline
Bankruptcy Law | Business Organizations Law
Research Areas
Corporate, Finance and Securities Law
Publisher
Elsevier
Citation
Aurelio GURREA-MARTINEZ.
Insolvency law as a catalyst for growth. (2025).
Available at: https://ink.library.smu.edu.sg/sol_research/4787
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://blogs.law.ox.ac.uk/oblb/blog-post/2025/06/insolvency-law-catalyst-growth