Household Insolvency

Abstract


 
 
 This review paper explores the issues related to the meaning and measurement of insolvency within the domain of household finances. Conceptual and empirical evidence to explain the onset of insolvency is reviewed. Predictive models andfinancial ratios are presentedas techniquesfor identifying insolvent households. Implications for monitoring of solvency by households and responses to insolvency are presented,
 
 

The Impact of Age on Polish Households Financial Behavior – Indebtedness and Over-Indebtedness

“…For gaining information on whether the debt servicing costs are not excessive it is necessary to determine the threshold of this indicator. In the literature it is taken at the level 20-50% [DeVaney, 1994;DeVaney, Lytton, 1995;Kempson, 2002;MORI, 2003;OXERA, 2004;Faruqui, 2006;Rebiere, 2007;Beer, Schürz, 2007;Carpentier, Van den Bosch, 2008;D'Alessio, Iezzi, 2012].…”

Mortgage Indebtedness and Household Financial Distress

“…In a later section we probe further into the aforementioned asymmetry by examining the potential links with the institutional environment prevailing in each 10 See for example DeVaney and Lytton (1995).…”

Household Over-Indebtedness: Definition and Measurement with Italian Data

“…Oxera (2004) identifies 50 per cent as the limit for the ratio of the cost of debt to income beyond which repayments are a major burden for households (DeVaney and Lytton, 1995). When considering only unsecured loans, the limit drops to 25 per cent.…”