A recent ProPublica story detailed how the city’s poor black residents are steered into bankruptcy plans they are doomed to fail. Two City Council members are looking at a series of solutions to address the underlying problems.
Novasha Miller, a lifelong resident of Whitehaven, a neighborhood in Memphis, filed Chapter 13 bankruptcy after debt collectors started garnishing her paycheck. Most debtors are unable to complete Chapter 13’s five-year payment plan and file bankruptcy again. (Andrea Morales for ProPublica)
Last month, ProPublica published a deep examination of how struggling black Americans are much less likely to gain lasting relief from bankruptcy than their white peers.
The story focused on Memphis, where the racial gaps in the system are starker than anywhere else in the country. Memphis also has the nation’s highest per capita bankruptcy filing rate, driven by the churn of thousands of black residents each year trying, and usually failing, to complete their bankruptcy plans — then trying again. It’s a system that works well … Read the Article