Choosing the right type of bankruptcy is really important. There are many myths out there about what you can and can’t do with bankruptcy, but only a lawyer can confirm the right choice for you and your family. If you’re pushed into Chapter 13, however, when Chapter 7 would have been a better fit, you might not receive the full range of the fresh start benefits otherwise available to you. New research indicates that stereotypes may be keeping some filers from getting the best benefits when they file a legal claim. The right lawyer is vital for making the best choices for your future in terms of filing for bankruptcy. If you don’t have an attorney at your side as you move through the case, you might make unnecessary mistakes.
Have you been thinking about filing for bankruptcy but are curious about your rights and are not sure about how to proceed? Previous research has already shown that society has less forgiveness towards African-Americans when they wind up in bankruptcy court. The various factors to illustrate this is that bankruptcy costs more, takes longer and leads to lower levels of debt relief for African-American applicants.
However, new University of Illinois research in legal studies and psychology shows that practitioners working inside the bankruptcy system may not have much awareness about the racial disparities that exist and rely instead on common stereotypes about debt responsibility and debt. One industry advocate says that the over-representation of blacks filing for chapter 13 should be especially problematic.
Stereotypes can obscure major patterns in the way that people perceive bankruptcy. To determine how bankruptcy attorneys were sensitive to racial disparities or not, surveys were sent out to a random sample. People who are choosing to file for bankruptcy may opt for chapter 7 or chapter 13. Chapter 7 is usually seen as more financially advantageous and less expensive for someone who is looking for a fresh start financially. They found that African-Americans were actually twice as likely to file for chapter 13 bankruptcy. If you or someone you know is contemplating filing for bankruptcy and needs assistance from an experienced lawyer, contact one today.