PHOENIX - Working families trying to get out from under their debts don't get the help that corporations do from the bankruptcy laws, economists say. Some people in Arizona who have gone broke recently have asked about the difference between their situation and that of bankrupt companies.

According to Teresa Ghilarducci, chair of the economics department at the New School of Social Research, the laws governing corporate bankruptcy were written to be fundamentally different from consumer bankruptcy laws.

"Individuals responsible for the corporation are often protected from any of the costs, whereas an individual who gets into debt, they're presumed to pay most of the cost back," she said.

Ghilarducci said a 2005 law made it much harder for individuals to shed their debts. She said it was written on the assumption that people trying to do that had done something wrong, but the laws do not assume that about corporations.

"The bankruptcy laws presume that the individual was stupid or immoral," as she described the situation. "Corporations are presumed to get into bankruptcy situations through no fault of their own."

She said big increases in student-loan and housing debt were among the causes of the financial crisis. Some people in the banking and financial industries have said consumers should be held responsible for living beyond their means, but Ghilarducci said many companies actually count on using the bankruptcy system to shift their debts onto employees, retirees and taxpayers.

"Corporations often use bankruptcy in their business model," she said. "People who didn't have any role in the corporation bankruptcies actually often have to pay the price."

She noted that the laws were written by people who were fully aware of what they were doing, in a climate where some groups have much more power than others.

"The bankruptcy laws for individuals have been made more and more restrictive. Individuals don't have the lobbyists that banks or corporations have," she pointed out.

More than a million Americans declared bankruptcy in the fiscal year ending October 1, about 24,000 of them in Arizona.



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Montana citizens and environmental advocates have sued the state for withholding documents that have, for decades, been considered public information.

The division that provides bill drafting and other support to the Montana Legislature has announced a new policy that requires a legislator's approval before releasing documents to the public.

That includes all the correspondence and communication that goes into drafting a bill, including lawmakers conferring with lobbyists and other legislators.

Upper Seven Law's Founder Rylee Sommers-Flanagan said Montana's Constitution protects residents' right to know about and participate in the legislative process.

"The right to know is meant to protect our ability to examine the documents of any public agency," said Sommers-Flanagan. "This includes all Executive Branch agencies. It includes all aspects of the Legislature. Anything that relates to their official business belongs to the people of Montana."

A Helena judge over the summer ruled that correspondence used to draft bills - so called "junque files" - are not public record, reversing a 25-year-old policy.

Sommers-Flanagan argued the move undermines transparency, which she said has been the backbone of Montana's lawmaking process, and calls into question interactions between lawmakers and lobbyists who often work together to create a bill.

"We could literally be deprived of opportunity to see bribery happening in writing," said Sommers-Flanagan. "And, of course, I doubt that our legislators are engaged in bribery - but what this does is, it protects them fully from any sort of disclosure around what they might be exchanging."

The rule was implemented when a district court ruled in favor of a state senator who argued that junque files related to a gerrymandering law should not be made public.




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The state Supreme Court has upheld a law giving Nebraskans with prior felony convictions the right to vote once they have completed their sentence.

Proponents of the measure are calling it a hard-fought victory to restore full rights to citizens who have paid their debt to society.

State lawmakers challenged a clause in the state's 1875 constitution disenfranchising people with felony convictions for life.

Steve Smith, director of communications with the group Civic Nebraska, said the ruling ends a decades-long legal battle.

"Had the court ruled the underlying statute is unconstitutional, those folks would have been out of luck," said Smith. "And so, the stakes were pretty high. In a state the size of Nebraska, that's close to 10% of the electorate. It's about 100,000 voters."

Smith said eligible people must register in person by 6 p.m. on Oct. 25 at their county's local elections office.

Smith said the ruling negates an order by the secretary of state blocking county officials from registering former felons despite a bipartisan bill that eliminated a two year waiting period for people with convictions.

He said the requirements to register have been simplified.

"It is fully completing your sentence. And so, the term is 'off-papers,'" said Smith. "And most folks who have been justice-impacted understand what off-papers mean. They've served any term of incarceration. They have completed any terms of parole, probation or supervised release, and they have not reoffended."

Smith said his organization and other are urging people who are now eligible to register and to vote, calling it both a civil right and a civic duty.

"For those of you going, 'I don't know if I want to do this,' know that the Supreme Court, the highest court in our state, has said, 'You are good to go, and you should vote with confidence,'" said Smith. "If you're on the fence about not voting, think about how hard some people tried to keep your vote away from you, and then wonder why that is."

Support for this reporting was provided by the Carnegie Corporation of New York.


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One in three Americans indicates they're living paycheck-to-paycheck, and that includes many artists. A Minnesota organization is expanding its guaranteed-income program for these individuals, so they can carry on with their creative contributions.

This fall, Springboard for the Arts announced it was tacking on more years and recipients to its pilot initiative, launched early in the COVID-19 pandemic.

Ricardo Beaird, community development director for Springboard for the Arts, said the changes mean that over the next five years, a total of 100 participants will receive monthly payments of $500, no strings attached. He said they're building a case for systemic change in how artists are supported.

"Artists are vital to the cultural and economic fabric of our communities. They help us imagine new futures. They help us rethink public spaces and they create connections that make our lives richer and more meaningful," Beaird explained.

But he added that artists tend to operate in a "gig economy" and often fall through the cracks because financial stability is out of reach. Based on initial program data, 36% of recipients used the income for essential purchases and services. This effort is part of a patchwork of similar programs surfacing around the U.S. for low-income populations, including one led by the city of St. Paul.

Springboard's guaranteed-income program, funded by private foundations, helps artists in St. Paul and rural Otter Tail County. Beaird said they're also trying to be more dynamic with their assistance by offering things such as personal finance guidance, and added that can help artists overcome the short-term thinking they're often locked in.

"I'm a theater artist, so the way that I thought about my year was in these six-week bursts, and it didn't really give me the opportunity to think about, 'What does my next year look like, or my next two years, or five years look like?" he continued.

Another benefit is helping emerging artists be more financially resilient when dealing with unexpected expenses, such as a hospital bill or car repair.


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