David G. Weil Bankruptcy Law Blog on Lawyers.com

Study Reveals African-Americans Twice as Likely As Whites to Wind up in Chapter 13 Bankruptcies - Bankruptcy Law Blog

Monday, January 23, 2012 by David G. Weil

In general, there are few issues that arise within the realm of
bankruptcy law that could be considered hot-button in nature or
otherwise controversial. The practice of bankruptcy law by attorneys
generally involves helping people who are tired of struggling with
their finances out from under mountains of stress and into a new and
more enjoyable life. However, a recent study has led to strong
responses from many people associated with the practice of bankruptcy
law.

According to a recent study that’s soon to be published in
The Journal of Empirical Legal Studies later this year,
African-American debtors are nearly twice as likely as white debtors to
be steered by bankruptcy lawyers into a Chapter 13 bankruptcy. A
Chapter 13 bankruptcy is one that involves more cost and a longer
repayment plan as opposed to a Chapter 7 bankruptcy, but it also can allow debtors to prevent their homes from being repossessed.

The study was conducted in part by providing bankruptcy lawyers with
fictitious financial records with names attached to them that were
clearly meant to signify one race or the other. The bankruptcy
attorneys then reviewed the records and made their recommendations. As
stated above, approximately half of white debtors were recommended to
pursue a Chapter 13 bankruptcy.
The study was careful to overtly point out that it was not alleging
any sort of conscious bias on the part of the attorneys who took part
in the study.

San Diego Bankruptcy Lawyers

While this study is sure to continue to bring about strong responses
from those who disagree with its findings, one thing that is overlooked
many times when people are struggling with their finances is that the
practice of bankruptcy law involves real people with serious problems,
and anyone in this position deserves the legal help necessary to put
this situation in the past for good.

If you are struggling with your finances and you’re ready to plot a
course to recovery that presents the best possible solution for your
situation, seek the help of San Diego bankruptcy lawyers who have helped thousands of consumers put these problems behind them. Contact the Golden State Law Group today to schedule a free initial consultation.

Posted at 16:45 PM

Topic: Bankruptcy