If the debtor, because of illness, unemployment, or other financial hardship, is unable to complete a debt repayment plan, the bankruptcy court has several options. The Chapter 13 filing can be converted into a Chapter 7 or the Chapter 13 repayment plan may be altered or dismissed. Upon successful completion of Chapter 13, the debtor has an opportunity for a fresh financial start, with property intact, and the satisfaction of having repaid all or a portion of the debts. An average of 25 cents on the dollar had been repaid before dismissal. Overall, confirmed Chapter 13's paid an average of 35 cents on the dollar.
Findings probably underestimate overall repayment because of the time period involved.
Thanks to Robert A. Brothers, Chapter 13 Trustee, Indiana, and Claude Rice, attorney, Kansas City, Kansas, for serving as reviewers. This information is for general educational purposes only, and in no way is intended to substitute for legal advice. The following states cooperated in making this publication available. 301 South Second St. 1420 Eckles Ave. Lafayette, IN 47905 St. Paul, MN 55108 University of Illinois University of Nebraska 123 Mumford Hall Ag.