What New York Consumers Should Know About Chapter 13

If you are considering Chapter 13 bankruptcy in New York - or have already filed and been dismissed - this page explains what the data means for you and what questions to ask.

Key District Data

In the Eastern District of New York, 99.2% of Chapter 13 cases filed in 2023 and 2024 ended in dismissal (preliminary data - active plans may still reach discharge). Over 53% of filers had no attorney. Nearly half were repeat filers. This district has the highest Chapter 13 dismissal rate in the federal court system.

What Does "Dismissed" Mean?

When a Chapter 13 case is dismissed, it means the repayment plan failed and the case was thrown out. The debtor does not receive a discharge of their debts. Common causes include:

Missed plan payments - failing to make required monthly payments to the trustee
Failure to file required documents - tax returns, pay stubs, financial management certificates
Plan not confirmable - the proposed plan does not meet legal requirements
Ineligibility - the debtor was never eligible to file (including 1328(f) time bars)
Voluntary dismissal - the debtor asks the court to dismiss

When a case is dismissed, creditor protections (the automatic stay) end, and creditors can resume collection activity. The debtor has spent time and money with nothing to show for it.

What a High Dismissal Rate Means for You

A dismissal rate of 88.2% (or 99.2% in recent years) does not mean your case will definitely fail. But it does mean:

This district has a higher-than-average dismissal rate that affects most filers
You need excellent legal representation - pro se filers (no attorney) have even worse outcomes
If you have filed before, you should verify your eligibility under 1328(f) before paying any fees
You should ask hard questions before committing to a 3-5 year repayment plan

Questions to Ask an Attorney Before Filing

1. What is your firm's Chapter 13 completion rate?

Any attorney should be able to tell you how many of their Chapter 13 cases result in discharge vs. dismissal. Compare their answer to the district average.

2. Have you checked whether I am eligible for a discharge under 1328(f)?

If you received a prior discharge, there are statutory time bars. An attorney should screen for this before accepting your case.

3. How many Chapter 13 cases does your firm file per month?

High-volume practices (sometimes called "bankruptcy mills") may process hundreds of cases with limited individual attention. Ask what personal attention you will receive.

4. What happens to my fees if the case is dismissed?

Most Chapter 13 attorney fees are paid through the plan. If the case is dismissed, the attorney may have already been paid while you received no benefit.

5. Is Chapter 7 an option for me instead?

Chapter 7 cases are completed in months, not years, and have much higher success rates. An attorney should explain why Chapter 13 is recommended over Chapter 7 if that is what they are proposing.

6. What is your plan to prevent dismissal?

Ask specifically how they will monitor your case, ensure payments are made, and respond to motions to dismiss.

Red Flags to Watch For

Warning Signs

No eligibility screening - the firm does not check your prior filing history
High-volume processing - you never meet the attorney who signs your petition
No discussion of Chapter 7 - Chapter 13 is presented as the only option without analysis
Upfront fees for a "guaranteed" outcome - no attorney can guarantee a discharge
You cannot reach your attorney after filing - lack of communication during the case
Multiple prior dismissals - if you have filed and been dismissed before, the same approach is unlikely to work

If You Have Been Dismissed

If your Chapter 13 case was dismissed, you should:

Understand why - review the court's dismissal order for the specific reason
Check for time bars - if you file again, sections 109(g) and 362(c) may limit your automatic stay protection
Evaluate your attorney - did they communicate with you during the case? Did they file all required documents on time?
Consider alternatives - Chapter 7, debt negotiation, or state court remedies may be more appropriate
File a complaint if appropriate - if your attorney failed to perform basic duties, consider filing a complaint with the state bar

The Pro Se Problem

Over 53% of Chapter 13 filers in EDNY have no attorney. Chapter 13 is one of the most complex areas of consumer law - it involves a 3-5 year repayment plan, ongoing trustee oversight, and dozens of procedural requirements. Filing without an attorney in this district has a very low success rate.

If you cannot afford an attorney, explore legal aid options on the resources page before filing pro se.

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