Down and Out
Many personal bankruptcies are really business failures in disguise.
By Joanne Cleaver •
Opinions expressed by Entrepreneur contributors are their own.
How many personal bankruptcies are actually small-businessbankruptcies in disguise? Between 13 and 14 percent, it turnsout.
Two law professors asked about small-business ownership as partof the Consumer Bankruptcy Project, an in-depth study of 2,000households that declared bankruptcy. Project co-directors RobertLawless, a University of Nevada, Las Vegas, law professor, andElizabeth Warren, a Harvard Law School professor and co-author ofThe Two-Income Trap: Why Middle-Class Mothersand Fathers Are Going Broke, specifically designed asection of the study to get at the long-suspected connection.Lawless and Warren agreed to give Entrepreneur a firstglance at their findings.
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