Do Chapter 13 payment plans really work? How many customers actually finish the plan and become debt free? How does it stack up to other options like consumer credit repayment plans? If you don’t know how likely a plan of action will succeed, how do you know what to do?
Historically, only one in three chapter 13 cases are completed nationwide. That is a pretty bad success rate in my opinion. Law professor Katherine Porter (@bankruptprof) wrote a provoking article about chapter 13 success rates in 2011 that basically called for an elimination of chapter 13 cases. Her study confirmed the dismal success rate of these cases.
Chapter 13 is a pretend solution. I use this term to mean a social program that does not work as intended but is not critiqued or reformed because its flaws are hidden.
That study always struck