Study tested whether an apology affected judges’ rulings in a fictional Chapter 13 bankruptcy case
Chapter 13 bankruptcy is typically sought by relatively high-income individuals who need some breathing room to help them climb out of overwhelming debt. This type of bankruptcy requires a judge to approve a payment plan so that the debtors can consolidate their debts, reduce their monthly payment obligations, and hopefully get their financial lives back on track at the end of 3 to 5 years.
People pursue this type of bankruptcy with a variety of attitudes, from deep shame and guilt to nonchalance over their out of control debts. Last year, law professors from the University of Illinois decided to test what role, if any, a remorseful attitude could play in the successful petitioning for Chapter 13 repayment plans.
The law professors invented a fictitious family named the Millers in order to determine how judges perceive remorse on the part of bankruptcy filers. The Millers were an average Illinois family with a home worth $180,000, an SUV worth $26,000, two kids, and $25,500 in credit card debt. The credit card debt included a variety of accounts including cards opened to pay for medical expenses and for kids’ enrichment activities.
The Millers’ proposed Chapter 13 repayment plan called for them to repay 18 percent of their unsecured debt over 3 years. Half of the judges received a copy of this plan with a heartfelt apology acknowledging responsibility and expressing remorse attached, and half received only the plan itself with no apology.
The professors found that 40.6 percent of the judges who read the apology approved the plan, whereas only 34.4 percent of judges who did not see the apology approved the plan. This result is interesting, but not actually statistically significant according to the researchers.
In essence, this study confirmed that judges are upholding their duty to interpret cases as instructed by the law. While some laws and statues such as those relevant to sentencing for crimes or granting parole do call for remorse or signs of growth to be taken into account, The Bankruptcy Code does not have any such requirements.
Even if taking responsibility for the actions that lead to overwhelming debt and expressing remorse has no effect on a judge, it may still be a worthwhile exercise because it helps the debtor prepare to move on from the situation and from the circumstances and habits that created the debt. After all, the purpose of Chapter 13 bankruptcy is to prepare for a fresh start, and an apology is often a great foundation for a fresh start.
