Published On: August 30, 2017
The American Bankruptcy Institute ‘ABI’ released a report addressing the astronomically high failure rate of chapter 13 bankruptcy. The findings are not surprising for those of us who work in this world, but are shocking for the rest of the consumer community.
It is likely that many bankruptcy judges have never had a successful chapter 13 pro se case.
According to the Report addressing pro se cases (filed without an attorney) Each year 25,000-40,000 debtors decide to file a chapter 13 case without an attorney. In California, one-third of chapter 13 cases have been filed pro se, accounting for nearly 40 percent of all such cases nationwide.
Only about one in 45 pro se chapter 13 cases result in a completed bankruptcy plan.
Regardless of where the cases are filed, the data paints a fairly dismal picture of the consequences of a pro se filing. More than half are dismissed within three months of filing, and more than 80 percent are gone with-in six months.
Less than one in 200 pro se debtors who satisfy all three of these criteria below end up with a successfully completed repayment plan.
The pro se success rates are even worse for debtors with:
- only one source of income (only one working debtor),
- debtors with a prior filing and
- debtors who do not pay their filing fees.
THE MORAL – Would not do your own open heart surgery? If not then why would you do something as complicated as a chapter 13 without an experienced bankruptcy attorney in your corner?
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
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You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
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Published On: February 2, 2021
Every client deserves competent advice in order to plan their life, but they also need to be able to avoid unforeseen results. They also deserve to be treated with respect and compassion by everyone involved [...]
Are you financially stressed right now? What to know about options, from debt negotiation to bankruptcy
Published On: September 9, 2020
Are you financially stressed right now? What to know about options, from debt negotiation to bankruptcy Russ Wiles, Arizona Republic, Arizona Republic Interviews Diane L. Drain about debt relief, including [...]
Published On: April 30, 2020
lawyer, retired law professor, educator, wife, mother I could tell you how bankruptcy may change your life, but why would you listen to me? After all, I am the attorney who charges money [...]
Published On: April 22, 2020
The following is a guest post – by Gary R. Stickell, a great Arizona bankruptcy attorney and my friend and mentor for more than 20 years. COVID-19 and CHAPTER 13 BANKRUPTCIES Most, if not all, [...]
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