Legal Versus Psychological Contracts: When Does a Mortgage Default Settlement Contract Become a Contract?

Debt and Overindebtedness: Psychological Evidence and its Policy Implications

“…However such schemes have not yet been shown to benefit either debtors or creditors (Mewse et al, 2010). J. T. Anderson et al (2020) argue that the conceptual basis on which creditors enter into negotiations with debtors is often unrealistic, and the repayment schedules they propose are often unsustainable because they do not take into account the other debts that people hold (Wrapson et al, 2007). For debtors, negotiating with creditors is emotionally costly (Tufail and Polletta, 2015) and frequently unfruitful (Krumer-Nevo et al, 2016).…”