Although race is not always an indicator of financial woes, could bankruptcy filings have more bias than some think? A recent study is prompting bankruptcy professionals in Florida and across the United States to reflect on the issue. The study also points out the importance of choosing a bankruptcy attorney carefully who can support his or her client's best interests during the complicated process.

When it comes to filing Chapter 13 bankruptcy, a new study shows that black people are about twice as likely to file for this type of bankruptcy as white people. The study suggests that lawyers are leading black people toward Chapter 13, which is typically more expensive and time-consuming. It is also considered less successful than Chapter 7 filing. A news report says while Chapter 13 filers have good intentions in mind, they sometimes fall short of fulfilling their payment plans and end up back where they started.

The study was conducted through questionnaires that were sent out to lawyers and through bankruptcy filing data. In the survey, lawyers were asked questions about two couples with names that are more typical of different races, but have virtually the same financial situation.

While bankruptcy professionals agree that there is something to take away from the survey, some also say that a lot of things were not taken into consideration, such as the complexity of things that need to be taken into consideration when choosing what chapter to file. Some also say that those with fewer assets are more prone to file Chapter 13 because of the attorneys' fees associated with bankruptcy. When filing for Chapter 7, the fees have to be paid up front, which some filers cannot do. On the other hand, Chapter 13 bankruptcy allows for payments over a period of time.

Source: New York Times, "Blacks Face Bias in Bankruptcy, Study Suggests," Tara Siegel Bernard, Jan. 20, 2012