Chapter 13 Bankruptcy: Nearly Half End in Failure
Source: FJC data, 4.9 million cases, 94 federal districts
Chapter 13 Dismissal Rate
48%
Chapter 7 Dismissal Rate
1.2%
Why the gap? Chapter 7 cases are resolved in months with minimal attorney involvement. Chapter 13 requires 3-5 years of active plan management. When attorneys collect fees upfront but provide inadequate ongoing support, cases collapse.
Source:
1328f.org · FJC Integrated Database, FY 2008-2024