Chapter 7 filings are less expensive than Chapter 13 filings, and also come with a much higher success rate. In the case of Chapter 13 filings, a person could spend the next several years paying back debt, although this doesn’t automatically make this plan worse than any other.
However, a study that investigated racial differences in bankruptcy filings has found that black Americans are much more likely to be steered into a Chapter 13 filing than white Americans. The disparity was seen even when both the black and white persons were in the same financial situation. Among blacks who filed for Chapter 13 bankruptcy protection, the rate was almost twice as high as for whites.
The trend was seen across the country, but there was an increase in Chapter 13 filings among people in the South. The findings of the study are expected to be published in the Journal of Empirical Legal Studies later in 2012.
California personal bankruptcy lawyers don’t take the results of the study to mean that the disparity is the result of discrimination. Not many studies have been conducted into racial differences in bankruptcy filings, which is why not much attention is paid to any differences.
Choosing the wrong bankruptcy protection plan can be disastrous. It must be mentioned here that each of these plans has its place, and each proceeding has its own benefits and advantages. An experienced California bankruptcy attorney should be able to evaluate your financial situation, and determine the plan that benefits you the most.
Comments
Post has no comments.