Study Highlights Racial Disparities in Bankruptcy Outcomes
Account Recovery
APRIL 9, 2025
In 2024, more than half a million U.S. households filed for bankruptcy protection, with many opting for Chapter 13, which allows debtors to retain assets like homes or cars while entering a repayment plan. However, a concerning pattern has emerged regarding the effectiveness of this process, particularly for minority filers. A recent study reveals significant racial disparities in bankruptcy dismissal rates, particularly among Chapter 13 cases.
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