Last week, ProPublica and The Atlantic co-published an article on how the bankruptcy system is failing African Americans. The article sheds light on an issue that was originally identified in academic studies by Professor Bob Lawless and his research collaborators. 

Lawless visited Illinois Public Media's Legal Issues in the News on Monday, October 2nd, to talk more about the problem of racial disparity in bankruptcy filings, and particularly the issue of how attorneys fees (rather than client needs) are driving chapter choice and reducing the system's overall efficiency and ability to deliver equal results. 

"The bottom line is that when blacks turn to the bankruptcy system for help, they are much more likely to find themselves in a more expensive and longer process that is less likely to relieve them from a crushing debt load. The fresh start for the honest but unfortunate debtor that American bankruptcy law has historically promised its citizens is unavailable. Black bankruptcy debtors find themselves less forgiven for their debts than their white counterparts. Changes to the rules in how attorneys get paid would help shrink the disparity, but more attention is needed to the problem. Nearly a million people turn to the bankruptcy system each year. It needs to offer not just the promise but the reality of equal justice for all."

Full Legal Issues in the News podcast

Full ProPublica article