It’s no secret that the wealth gap between black and white Americans has persisted for decades.
Today, a recent report shows black Americans are up to 28% more likely to be fired from bankruptcy than non-black filers, helping to widen America’s wealth gap. , according to experts. combat.
A bankruptcy rejection closes your bankruptcy case, resulting in the loss of the protection of an order preventing creditors from collecting debts. The bankruptcy applicant remains responsible for his debts.
A to study by the Wharton School of Business at the University of Pennsylvania found a bias in dismissal rates for bankruptcy. Black Americans were more likely to be asked to file Chapter 13 bankruptcy compared to Chapter 7, revealing an implicit bias in Wisconsin Bankruptcy advice and proceedings, Yahoo.com reported.
Quarterbacked by Wharton Finance Professor Sacha Indarte, the researchers found that black bankruptcy filers were more likely to have Chapter 7 and Chapter 13 bankruptcy cases withdrawn by the court.
The study showed that Chapter 7 cases for black filers were 4% more likely to be rejected than non-black filers. The average termination rate for bankruptcy is 2. Chapter 13 has a termination rate of 50%.
However, black filers consistently have an 80% chance of having their bankruptcy rejected. Additionally, black filers using Chapter 13 were 28 percent more likely to be fired than other filers.
Find more details about the study here.