Arizona adopted a chapter 13 model plan – effective for all cases filed or converted after December 1, 2017
According to the Arizona Bankruptcy Court the failure rate of those who file their own chapter 13 cases (without an experienced chapter 13 attorney) is over 98%. Even with a very good chapter 13 attorney the failure rate is between 40 and 50%. Why? Because life happens!! Most people are in chapter 13 cases for five years (a few as little as three years). During that period life goes on for the debtor – their income changes, their life situation changes (marriage, divorce, children or death), their goals change (keep the house or give it up, retire or keep working).
Chapter 13 challenges
I only practice in Arizona so am not familiar with the failure rate in other states, but do know chapter 13 cases are very challenging. Many bankruptcy attorneys will not accept these cases because of the complexities, so make sure to investigate any attorney who offers to help in a chapter 13 case. Look at their on-line reviews, ask for references, check out the State Bar of Arizona (look for years in practice and bar complaints).
Avoid any firm that makes you feel you just walked onto a used car sales lot. Most importantly – follow your gut.
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.*
In Case You Missed It
Published On: June 27, 2026
Merchant cash advances can provide fast cash, but daily withdrawals, stacked MCA loans, SBA loan conflicts, personal guarantees, and bankruptcy risks can quickly put a business and its owner in danger.
Published On: June 26, 2026
Bankruptcy Is Not Just Paperwork: Some Simple Mistakes That Can Cost You For many people, bankruptcy is not the first choice. It is usually something they consider only after they have done everything they know [...]
Published On: June 24, 2026
Build Financial Stability, Not Just a Better Credit Score A good credit score can be helpful. It may make it easier to rent an apartment, obtain a mortgage, finance a vehicle, or qualify for lower [...]
Published On: June 13, 2026
Worried about losing your tax refund when you file bankruptcy in Arizona? Arizona law may protect the part of your refund that comes from the Earned Income Tax Credit and Child Tax Credit. Learn what may be protected, what a trustee may claim, and why timing matters before you file.
