What is the Chapter 13 dismissal rate?

Nationally, 33-67% of Chapter 13 cases are dismissed before discharge, depending on district and time period. Geographic variation is dramatic.

Why are Chapter 13 dismissal rates so high?

Common causes: inability to make payments, failure to file documents, income changes, and plan infeasibility. Attorney quality and local legal culture also matter.

What happens when a Chapter 13 case is dismissed?

The automatic stay lifts, creditors resume collection, and plan payments are distributed. The debtor may refile subject to stay limits.

Bankruptcy Dismissal Rates -- National Chapter 13 Statistics

National Chapter 13 Dismissal Rates

Chapter 13 requires completing a 3-to-5-year plan. Nationally, a significant percentage never reach discharge. FJC data shows dismissal rates ranging from under 30% to over 60% depending on district.

Why this matters: Debtors should understand the success rate in their district. Researchers need this data to identify systemic issues.

Factors Influencing Dismissal Rates

Income stability -- Job loss during a 3-5 year plan is the most common cause
Plan feasibility -- Aggressive plans with little margin fail more often
Attorney quality -- Experience and caseload correlate with outcomes
Local legal culture -- Trustee practices, judge expectations vary by district
Payment mechanisms -- Wage orders have higher completion rates

After Dismissal

The automatic stay lifts and creditors may resume collection. Refiling complications:

362(c)(3): One dismissal in prior year = stay expires in 30 days
362(c)(4): Two+ dismissals = no stay without court order
109(g): Willful failure = 180-day filing bar

Explore This Site

What Dismissal Means

Effects on debts, property, and future filings.

Check Your District

Find Chapter 13 success rates in your district.

Related Resources

dismissedbankruptcy.org -- What to do after dismissal

109g.org -- 180-day filing bar

serialfiler.org -- Stay limits for repeat filers