Why Are Black Churches Filing Under Chapter 11 More So Than Other Churches?
Reader, why are Black Churches filing under chapter 11 more so than other churches? Could it be that lenders may have charged Black Churches more for credit and denied Black Churches’ modification requests in times of financial troubles, leading these churches to file under chapter 11 to achieve debt restructurings? According to BloombergBusiness.Com, a long line of research shows that black consumers pay higher rates for credit, including mortgages and car loans.
A new study suggests the same kind of financial discrimination may apply to black churches. Of the 654 religious congregations to file for Chapter 11 bankruptcy protection between 2006 and 2013, 60 percent had black pastors or predominantly black membership, according to a just-published paper by Pamela Foohey, an associate professor at the Indiana University Maurer School of Law. Meanwhile, black churches make up only 21 percent of U.S. congregations, according to a 2012 analysis.