Woodstock Institute of Chicago Releases Bankruptcy Study

The Woodstock Institute of Chicago released a study this month showing that bankruptcy filers in predominately black neighborhoods were more likely to choose Chapter 13 bankruptcy over other types.

Examining the bankruptcies filed in Cook County, the group found that 47.9 percent of filers in black neighborhoods chose Chapter 13 bankruptcies over the past five years. When compared to the nationwide average of 32.8 percent, the numbers seem astronomical. In areas where 90 percent of the residents are white, just 22.5 percent of filers opted for Chapter 13 bankruptcy.

The purpose of this study is to show that black people are not being given the same chance as those who file for Chapter 7 bankruptcy to discharge their debts. According to Geoff Smith, an author of the study, Chapter 7 bankruptcy is being enjoyed more by white filers than their black counterparts. Under this type of bankruptcy filing, the filer"s debts are discharged after a sale of their assets, excluding vehicles and homes.

Need help moving forward with Chapter 7 or Chapter 13 bankruptcy? Contact us to receive assistance from a Chicago bankruptcy lawyer.