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A Critical Race Theory Analysis of Bankruptcy’s Political Development

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  • Tess Wise

    (Wake Forest University)

Abstract

Dominant explanations of bankruptcy’s political development in the United States emphasize how the relatively concentrated interests of creditors and bankruptcy professionals combined with pro-debtor ideology to support the development of a uniquely liberal and comprehensive bankruptcy system. The dominant explanations elucidate much about bankruptcy’s political development, but they do little to explain bankruptcy’s racialized history and relationship with present-day racial inequality. In this paper, I use a Critical Race Theory (CRT) approach to expand our understanding of bankruptcy’s political development. The analysis underscores the role bankruptcy played in converting dispossessed native land and the bodies and labor of enslaved people into financial assets for White families and how bankruptcy contributes to the racial wealth gap by facilitating predatory inclusion today. The paper concludes by considering contemporary proposals for bankruptcy reform in light of the analysis.

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  • Tess Wise, 2024. "A Critical Race Theory Analysis of Bankruptcy’s Political Development," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 276-287, June.
    • Handle: RePEc:kap:jfamec:v:45:y:2024:i:2:d:10.1007_s10834-023-09928-6
    DOI: 10.1007/s10834-023-09928-6
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    References listed on IDEAS

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    1. William Darity & Fenaba R. Addo & Imari Z. Smith, 2021. "A subaltern middle class: The case of the missing “Black bourgeoisie” in America," Contemporary Economic Policy, Western Economic Association International, vol. 39(3), pages 494-502, July.
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    3. Jean Braucher & Dov Cohen & Robert M. Lawless, 2012. "Race, Attorney Influence, and Bankruptcy Chapter Choice," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 9(3), pages 393-429, September.
    4. Paige Marta Skiba & Jeremy Tobacman, 2019. "Do Payday Loans Cause Bankruptcy?," Journal of Law and Economics, University of Chicago Press, vol. 62(3), pages 485-519.
    5. Kevin A. Clarke & Lawrence S. Rothenberg, 2018. "Mortgage Pricing and Race: Evidence from the Northeast," American Law and Economics Review, American Law and Economics Association, vol. 20(1), pages 138-167.
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    Cited by:

    1. Terri Friedline & Fenaba Addo, 2024. "Introduction to the Special Issue on “The Political and Economic Contexts of Families’ Financial Lives”," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 251-255, June.

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