Unjust Debts : How Our Bankruptcy System Makes America More Unequal - Melissa B. Jacoby

Unjust Debts

How Our Bankruptcy System Makes America More Unequal

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Published: 25th February 2025

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Named one of the Best Summer Books in Economics by the Financial Times

A groundbreaking look at the hidden role of bankruptcy in perpetuating inequality in America

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.

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, 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. 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.

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