The majority of Blacks are being steered in Bankruptcy Chapter 13 while most Whites are filing for Chapter 7 of the Bankruptcy code based on a 2007 Connsumer Bankruptcy Project. Blacks file for Chapter 13 of the Bankruptcy code 55%, Whites 29%, Asians 24%, Other 24%, and Hispanics 22%.
The vast majority of debtors excluding Blacks file under Chapter 7 of the bankruptcy code, which typically allows them to erase most debts in a matter of months. It tends to have a higher success rate and is less expensive than the alternative, Chapter 13, which has been more popular with Blacks and requires debtors to dedicate their disposable income to paying back their debts for several years.
Based on a survey, many bankruptcy lawyers are steering Blacks into Chapter 13 even when they have a similar financial profile to Whites. Read the full story.
Sunday, January 22, 2012
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