We should keep the bankruptcy system open.

There should be two policies. For people who were doing well financially prior to COVID-19, financial support so they can avoid bankruptcy and hold onto their assets.

The CARES Act was a good start, but more will be needed.

(1/4) https://twitter.com/ASlavitt/status/1245565150377250816

But many people (and businesses) were struggling even before this crisis. Let's move them through the bankruptcy system now so they can get a fresh start and be ready to thrive when the economy recovers.

(2/4)

This will also have the benefit of freeing up capacity in the bankruptcy system for the firms and consumers that need it even after whatever aid the federal and state governments are able to offer them.

That will likely be a large number.

(3/4)

One of the biggest threats to an economic recovery is economy-wide debt overhang, where firms and consumers emerge from the crisis with contractual obligations that reflect the pre-COVID19 world.

Bankruptcy law will play a crucial role in building the post-COVID19 world. (4/4)