What Chicago Consumers Should Know About Chapter 13
If you are considering Chapter 13 bankruptcy in the Chicago area -- or have already been dismissed -- this page explains what the data means for you.
94.1% Preliminary Dismissal Rate in 2024
The Northern District of Illinois shows a 94.1% preliminary Chapter 13 dismissal rate in 2024. Over the full 2008--2024 period, 137,366 out of 238,789 cases ended in dismissal. These are among the highest rates observed in the FJC database.
What Does "Dismissed" Mean?
When a Chapter 13 case is dismissed, the repayment plan did not complete and the case was closed without a discharge. Common causes include:
- Missed plan payments -- failing to make required monthly payments to the trustee
- Failure to file 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 (including 1328(f) time bars)
After dismissal, creditors can resume collection, garnishment, foreclosure, and repossession.
Why Chicago's Numbers Matter
NDIL is one of the largest bankruptcy districts in the country. With a 94.1% preliminary dismissal rate:
- Roughly 8,400 families per year are going through a multi-year process that may end in dismissal
- Attorney fees are collected for cases that frequently end in dismissal
- Court resources are used by cases cycling through filing and dismissal
- 38.4% of filers have filed before -- they are returning after a prior case that did not result in discharge
Questions to Ask an Attorney Before Filing
1. What is your firm's Chapter 13 completion rate?
The district's preliminary 2024 dismissal rate is 94.1%. Ask how their clients compare. If they cannot answer, that is worth noting.
2. Have you screened me for 1328(f) eligibility?
If you have a prior discharge, statutory time bars may prevent you from receiving another one. 7,607 cases in this district may have been filed despite ineligibility.
3. Why Chapter 13 instead of Chapter 7?
Chapter 7 is completed in months with much higher success rates. Your attorney should explain specifically why a 3-5 year plan is better for your situation.
4. How many cases does your firm handle simultaneously?
Chicago has a history of high-volume bankruptcy practices. Ask what individual attention your case will receive throughout the 3-5 year plan.
5. What happens to your fees if I am dismissed?
Most Chapter 13 attorney fees are paid through the plan. If dismissed, the attorney may have been paid while you received no discharge.
6. What is your plan to keep my case on track?
With a 94.1% preliminary dismissal rate in the district, ask specifically what steps they take to support plan completion.
Factors to Evaluate
Factors to Consider
- No eligibility screening -- no check of prior filing history before accepting your case
- Volume-first practice -- hundreds of active cases, minimal individual attention
- No Chapter 7 analysis -- Chapter 13 presented without evaluating alternatives
- Unreachable after filing -- cannot get responses once the case is in process
- Same firm, same outcome -- if the same firm filed your previous dismissed case, ask why this time will be different
- No discussion of the district's track record -- transparency about the environment matters
If You Have Been Dismissed
- Review the dismissal order -- understand exactly why your case was dismissed
- Check time bars -- 109(g) and 362(c) may limit protections if you refile
- Evaluate your attorney -- did they file documents on time? Attend hearings? Communicate?
- Consider Chapter 7 -- if eligible, it completes in months with higher success rates
- Get a second opinion -- do not refile with the same firm without consulting another attorney first
Prior Filer Considerations
38.4% of NDIL filers have filed before. If you are a repeat filer, you face additional risks:
- Your automatic stay may be limited to 30 days under section 362(c)(3)
- You may be ineligible for discharge under 1328(f) time bars
- Courts may presume bad faith if you have multiple prior filings
- The same approach that did not result in discharge previously may produce the same outcome
Use the free 1328(f) screener to check your eligibility before paying any fees.