Unjust Debts: How Our Bankruptcy System Makes America More Unequal

by Melissa B. Jacoby

A groundbreaking look at the hidden role of bankruptcy in perpetuating inequality in America, from an expert in the field

Bankruptcy is the busiest federal court in America. In theory, bankruptcy in America exists to cancel or restructure debts for people and companies that have way too many—a safety valve designed to provide a mechanism for restarting lives and businesses when things go wrong financially. In this brilliant and paradigm-shifting book, legal scholar Melissa B. Jacoby shows how bankruptcy has also become an escape hatch for powerful individuals, corporations, and governments, contributing in unseen and poorly understood ways to race, gender, and class inequality in America. When cities go bankrupt, for example, police unions enjoy added leverage while police brutality victims are denied a seat at the negotiating table; the system is more forgiving of civil rights abuses than of the parking tickets disproportionately distributed in African American neighborhoods. Across a broad range of crucial issues, Unjust Debts  reveals the hidden mechanisms by which bankruptcy impacts everything from sexual harassment to health care, police violence to employment discrimination, and the opioid crisis to gun violence. In the tradition of Matthew Desmond’s groundbreaking Evicted , Unjust Debts is a riveting and original work of accessible scholarship with huge implications for ordinary people and will set the terms of debate for this vital subject.

Genres: Nonfiction, Economics, Law, Audiobook, Legal

320 pages, Hardcover

Published June 11, 2024

Reviews

[Jamie Park · Rating 5 out of 5]

We never talk about how credit card companies, and student loan companies, and the medical system, actually thrive on us not being able to pay things back. We now have "debt consolidation" companies that can be just as predatory. I was really glad to see that this book was being published. We need to talk about this.
Bankruptcy is absolutely a way for the rich to get away with things, while normal citizens are stuck. A few of the chapters depressed me but it is information I need to have if i want to make any changes in our society.
Why do the pharma companies get to kill people and then not pay their debts but I am stuck with student loans for life?
Thanks for the Appendix. I needed it because I am not educated enough to understand all of this. I love it!
Thank you so much!

[Richard Marney · Rating 4 out of 5]

This book is easily navigated by non-lawyers and other bankruptcy field related professionals with the simple caveat: start by consulting the appendix and memorize the definitions of the various bankruptcy code chapters. It’ll make your reading experience smoother!

The gist of the book: the “system” ensures corporations (aka “fake people”) get better deals than do the common folks when they or the local governments of which they are a part must enter bankruptcy. This is yet another example of how institutions in the US have become corrupted for the benefit of the rich and powerful.

[Lucy Walton · Rating 5 out of 5]

This book is a fantastic introduction to the injustices baked into our current bankruptcy system. It is readable even if you know nothing about the topic, and made me want to continue to learn more!

[Travis · Rating 5 out of 5]

This book is an informative, revealing look at the US bankruptcy system and how it privileges the rich over the poor and big businesses over small businesses and individuals. It further describes in great detail how many businesses (Purdue Pharma and the Sackler family, Johnson and Johnson, asbestos companies, etc.) and non-profits or churches (Boys Scouts, USA Gymnastics, various Catholic dioceses) abuse the bankruptcy system to try to evade compensating victims of product liability, medical malpractice, and sexual abuse. I learned a lot from this book and was also taken aback by the extent to which large corporations the wealthy individuals abuse the bankruptcy laws for their own benefit and at great harm to many.

[John · Rating 3 out of 5]

Interesting book on the problems of bankruptcy. Each chapter concerns a specific problem. The chapters on consumer issues I felt largely replicated earlier work. But the chapters on the Detroit bankruptcy and chapter 11 issues addressed issues I had not seen addressed before.

The weakness in the book: proposing solutions. There is little use in pointing out problems without providing concrete suggestions for improvement. The only concrete proposal I can remember is to withhold the chapter 11 discharge until completion of all plan payments. In the author's defense, however, this is a book written for a general audience so providing more concrete solutions may lose the intended audience.

Definitely worth reading if you know little about how bankruptcy works in the United States. The author's writing style is clear and without academic jargon.

[Joyce · Rating 5 out of 5]

Reading Unjust Debts helps one better understand the "use" of the bankruptcy laws & courts by large corporations, lawyers and those with deep pockets. The glossary was most helpful and as well as the bibliography. More bankruptcy courts and judges are needed to allow for the proper study of each complex case in today's world. A good read.

[Jaden Block · Rating 5 out of 5]

A depressing but sober analysis of the U.S.' bankrupcy system, with an eye for inequities. The frequent comparisons between treatment in individual and commercial ('Fake People') bankrupcies were the most fruitful.

[M Williams · Rating 4 out of 5]

Interesting read surrounding the bankruptcy system and how people are treated differently from corporations in proceedings, the racial disparities in the system and how corps have used the process to navigate large lawsuits (Perdue Pharma, Boy Scouts, etc.)

[Emily · Rating 3 out of 5]

3.5 stars

[Alex MacFarlan · Rating 3 out of 5]

Need to have familiarity with bankruptcy law as a professional.

[Sara Goldenberg · Rating 4 out of 5]

Good and easy to understand for the layperson!