Bankruptcy Racial Disparities Poised to Add to Pandemic Pain (1)

Covid-19’s economic impacts, from job losses to business closures and relief measures, have disproportionately affected Black Americans as much as the virus itself.

And if history is any guide, even the lifeline of bankruptcy may be ill-equipped to give most pandemic-ravaged Black debtors a fresh start.

Dozens of academic studies over more than three decades have concluded that Black debtors file for bankruptcy disproportionately more than other racial groups, yet get less permanent relief. A 2017 analysis—co-authored by now-U.S. Rep. Katie Porter (D-Calif.)—found Black filers half as likely as other groups to permanently eliminate their debts, no matter ...