Recessions are often fraught with layoffs, slashed hours and lost jobs. Surviving the financial ramifications of a recession can be tough too, especially for Georgia residents who were already at a disadvantage. So while anyone of any age, race or gender might need to file bankruptcy, some groups might be hit harder than others.
Black women face unique challenges
According to one expert, Black women are overrepresented when it comes to bankruptcy, meaning that they make up a disproportionately high number of bankruptcy filings. Part of the problem is that the unemployment rate for Black women shot up drastically in April 2020, and has yet to really make considerable improvement. It is no surprise that many of these women pointed to income and job loss as a main factor in the decision to file.
The overrepresentation of Black women in bankruptcy goes beyond recent job losses, though. Experts have highlighted the problem of structural racism, which contributes to problems such as income and wealth gaps. Since Black women are faced with these types of issues on a regular basis, many do not turn toward bankruptcy until they have already exhausted other options such as:
- Selling personal possessions
- Avoiding necessary health care
- Cutting back on life’s necessities
It can be terrifying to realize that one can no longer keep up with bills, debts and other financial obligations. Cutting back on necessities or selling possessions only puts a temporary bandage on financial trouble, and it’s is rarely enough to truly address the problem. Bankruptcy on the other hand provides a proven path toward financial security, which many people in Georgia may be able to benefit from.