Two out of three confirmed Chapter 13 cases fail. Those are cases that met all the tests and got the judge’s OK.
And still they crater.
That’s a heap of people, deeply in debt, who don’t make it out of debt by using Chapter 13.
Arizona bankruptcy lawyer John Skiba has a theory about those failures:
- Lack of a lawyer
- Luck of the trustee draw
I wouldn’t argue against any of John’s culprits: none of the things he lists help a Chapter 13 debtor.
But I have an alternate set of reasons that those trying to reorganize their debt through Chapter 13 don’t make it to the end. [Read more…]