Is your Chapter 13 doomed to fail?

Is your Chapter 13 doomed to fail?

Over 15,000 Chapter 13 cases have been filed in the Northern District of Georgia Bankruptcy Court so far this year. Most of these cases were filed in the Atlanta division bankruptcy court.

Did you know that approximately 50% of these chapter 13 cases will fail?

By failing, I mean that the cases end before the debts are discharged. Yes, sometimes the cases convert to Chapter 7 and the debts are ultimately discharged in Chapter 7.

But the truth is that most of the Chapter 13s that fail do so because the debtors who file Chapter 13 are not well-prepared to take on the challenges of Chapter 13.

This is bad because the bankruptcy filing goes on the debtor’s credit report–does about 350 points damage to the credit score–and doesn’t result in relief from debt.

Who’s at Fault?

It’s your Chapter 13 bankruptcy attorney’s job to take the time to work through these kinks with you before you file your case. Don’t waste time and money on an attorney who won’t be bothered to do these calculations for you. If you’re interviewing attorneys, get up and leave if you feel like you’re not being treated well by your attorney. If you’ve already filed and want a new attorney, it’s not too late to switch so long as you are pre-confirmation.

You need an advocate who understands the code, and the Chapter 13 trustees in our district.

Call me, Attorney Shannon D. McDuffie for my advice about your Chapter 13 plan. (404) 418-8879.

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