Factually! with Adam Conover

How Bankruptcy Shields Capitalists from Consequences with Melissa Jacoby

Jul 24, 2024

Law professor Melissa Jacoby discusses how bankruptcy system benefits the wealthy but punishes the poor in America. Topics include disparities in wealth divide, bankruptcy as an economic safeguard turned divider, and challenges in bankruptcy reform for fairer outcomes.

01:11:45

Episode guests

Melissa Jacoby

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Bankruptcy disproportionately affects vulnerable groups, perpetuating inequality across racial lines.

Systemic flaws in bankruptcy shield wrongdoers from accountability, disadvantaging victims seeking compensation.

Bankruptcy fails to address structural injustices, resulting in unequal outcomes and limited accountability.

Deep dives

Bankruptcy as a Safety Valve in an Unequal Society

Bankruptcy serves as a necessary release valve in a society where debt is prevalent, allowing individuals and organizations to disperse their debts when unable to pay them. However, while bankruptcy offers a fresh start for some, it disproportionately affects vulnerable groups and perpetuates inequality across racial lines. The bankruptcy system, designed to provide debt relief, falls short in delivering equal protection, highlighting systemic disparities in how bankruptcy impacts different socioeconomic groups.

Intro

4min

The Crucial Role of Bankruptcy in the American Economy

16min

The A.H. Robbins Company and the Dalcon Shield: Balancing Justice in Bankruptcy

9min

Exploring Power Differentials, Bankruptcy, and Legal Liability

6min

Examining Individual Harm in Bankruptcy Cases

2min

Exploring the Complexities of Bankruptcy in Institutions

4min

Institutional Accountability and Bankruptcy in Cases of Harm

21min

Challenges and Reform in Bankruptcy System

9min

Supporting Consumer Bankruptcy Reform and Building Solidarity Among Debtors

4min

Bankruptcy can mean totally different things depending on your wealth. For the rich, it’s a shield; for the poor, it’s a punishment. Despite this debilitating divide, in a country where we need to take on debt for homes, transportation, and medical care, we still rely on the bankruptcy system to keep the economy from collapsing. This week, Adam sits with Melissa Jacoby, a law professor at UNC Chapel Hill and author of Unjust Debts: How Our Bankruptcy System Makes America More Unequal. Together they discuss how a system designed as an economic safeguard has turned into a major divider of wealth in America. Find Melissa's book at factuallypod.com/books

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