About 60-67% of Chapter 13 cases end in dismissal. Understanding why can help you prepare.
According to FJC data covering 4.9 million cases across 94 federal districts, the majority of Chapter 13 bankruptcy cases do not result in a discharge. The national failure rate is approximately 60-67%, meaning roughly two out of every three filers do not complete their repayment plans.
The most common cause. Chapter 13 requires 36 to 60 months of consistent monthly payments. Over that period, financial disruptions are almost inevitable: job loss, medical emergencies, car repairs, divorce, or other expenses. When payments are missed, the trustee files a motion to dismiss.
Courts require schedules of assets and liabilities, statements of financial affairs, tax returns, pay stubs, and other documents. When these are not filed within the court's deadlines, the case is dismissed. This is especially common with bare petitions that are never completed.
Some plans are based on optimistic income projections or underestimate expenses. When the debtor cannot actually afford the proposed payment, the plan fails. This can be a sign of inadequate pre-filing analysis by the attorney.
The 341 meeting of creditors is mandatory. Failure to appear results in dismissal. Some debtors miss the meeting due to lack of transportation, work conflicts, or failure to receive notice.
Over 3-5 years, circumstances change. Divorce, disability, relocation, or the death of a co-debtor can make plan completion impossible. While plan modifications are available, they require additional court proceedings and attorney fees.
Court data reveals significant variation in completion rates among attorneys within the same district. Some attorneys achieve completion rates above 50%, while others fall below 15%. This variation suggests that the quality of legal representation plays a meaningful role in case outcomes.
A failed Chapter 13 case typically costs the debtor $3,500-$5,000 or more in attorney fees and filing fees, plus all plan payments made before dismissal. None of this results in debt relief. The debtor ends up worse off than before filing -- with less money and the same debts.
Federal court records show patterns that correlate with higher failure rates:
Failure rates vary dramatically by district. Some courts see dismissal rates above 75%, while others stay below 50%. These differences reflect variations in local legal culture, trustee practices, attorney quality, and judicial approach. Check your district's specific data before filing.
See Chapter 13 completion rates in your district.
View Success Rates by StateThis page provides general information based on publicly available federal court records. It does not constitute legal advice. Consult a licensed attorney for advice on your specific situation.
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