Recent studies suggest there may be prevalent stereotypes against a particular race of people when it comes to certain forms of debt relief. Various psychologists and legal researchers combined efforts to investigate the topic.  They have concluded that there are significant racial disparities associated, in particular, with Chapter 13 bankruptcy. Louisiana residents currently facing a financial crisis may want to learn more about this issue.

Research shows society is much less forgiving toward those of African-American descent when it comes to filing for this type of bankruptcy in court. In fact, those who conducted the studies say this group of people tend to receive lower levels of debt relief than their Caucasian counterparts. Study results also show court proceedings involving African-Americans seeking debt relief often take longer and cost more than others.

Past studies have shown that African-Americans seeking debt relief do tend to choose Chapter 13 over Chapter 7 bankruptcy more often. One psychology professor stated that a current misguided stereotype exists, however, that suggests more Caucasian people than African-Americans file for Chapter 13. The professor said such stereotypes are part of the problem because they negatively affect the debt relief court process for the African-American population.

Some say the nation’s bankruptcy system is in need of reform. More accurate information and better measurement of current data among races may help even the playing field when it comes to African-Americans (or anyone) seeking Chapter 13 debt relief in court. In the meantime, anyone in Louisiana in need of bankruptcy guidance may schedule a consultation with an experienced debt relief attorney.

Source: phys.org, “Stereotypes about race and responsibility persist in bankruptcy system,” Phil Ciciora, Nov. 29, 2017