Abstract

For nearly thirty years, legislators in Europe and South America have looked to mediation as a preferred mechanism for resolving the rising problem of personal overindebtedness. This reliance has generally been misplaced, as voluntary personal debt conciliation has most often ended in failure. In some cases, however, mediation has fulfilled its promise of unburdening the court system and reconciling debtors and creditors gracefully, without formal intervention. What distinguishes failure from success in this context, and might legislators enhance the efficiency and ...