How Bankruptcy Laws Create a Wealth Divide

Episode 19 of Inequality Conversations explores how the U.S. bankruptcy code, designed as a fresh start, actually reinforces wealth inequality. Lucas and Luna break down the chapter divide between Chapter 7 and Chapter 13, why medical debt is treated less favorably than credit card debt, and how asset exemptions vary wildly by state. They focus on the case of student loan debt, which is nearly impossible to discharge, trapping millions in long-term wealth drain. The hosts also discuss proposed reforms like the Bankruptcy Reform Act of 2026 and why financial institutions lobby to keep the system punitive. A concrete look at how a legal safety net has become another structural barrier to wealth building. #Bankruptcy #WealthGap #Chapter7 #Chapter13 #MedicalDebt #StudentLoans #AssetExemptions #BankruptcyReform #DebtTrap #FinancialInstitutions #Lobbying #EconomicJustice #WealthInequality #LegalSystem #ConsumerDebt #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo