Lender Discrimination May Be Pushing Black Churches Into Bankruptcy

  • Thread starter Thread starter CopyBoy
  • Start date Start date
Status
Not open for further replies.
C

CopyBoy

Guest
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.
Click to expand...
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.
Click to expand...
bloomberg.com/news/articles/2015-12-24/lender-discrimination-may-be-pushing-black-churches-into-bankruptcy
 
I thought it would have more to do with where black churches are physically located.
 
I wonder if sometimes the tax advantage may not be enticing since it doesn’t seem so difficult to start a church these days.

huffingtonpost.com/entry/start-your-own-church_55d24635e4b07addcb43bd60

I also see a lot of small non-denominational churches in my town, one of which I know the pastor well. His congregation has fallen away from his church and he is no longer able to meet the church’s financial obligations. I would not be surprised to see him filing bankruptcy as his church building is for sale now that he cannot make the payments. I will so miss our bible studies should he close.
 
This is very sensational and based on wild speculation. I’d say I expect more from a law professor but I don’t. This is what much of academic research is. It is no different from the wild speculation of tabloid rags.
 
Potential of bankruptcy is exactly the reason for the higher interest payments in the first place. It seems bad credit begets more bad credit. Vicious circle.
 
Status
Not open for further replies.
Back
Top