Chapter 13 lets you keep your property while repaying debts over 3-5 years. But in Kansas City, the dismissal rate is alarmingly high -- meaning many filers never complete their plan.
Chapter 13, sometimes called a "wage earner's plan," allows people with regular income to create a court-supervised repayment plan lasting 3 to 5 years. You make monthly payments to a bankruptcy trustee, who distributes the money to your creditors according to the plan.
Unlike Chapter 7, Chapter 13 does not require liquidating assets. You keep all your property. At the end of the plan, remaining eligible debts are discharged.
Chapter 13 is particularly useful for:
The data tells a concerning story. A dismissed Chapter 13 means the debtor spent months or years making payments but received no discharge -- no debt relief.
Out of 46,548 Chapter 13 cases filed between 2008 and 2024, 16,844 were dismissed. Only 21,878 achieved a successful discharge. The rate has climbed from 35.5% in 2010 to preliminary rates above 90% in 2023-2024.
Out of 44,949 Chapter 13 cases filed, 11,748 were dismissed. 25,615 achieved a successful discharge. The Kansas side has remained more stable and produces significantly better outcomes.
Your monthly payment is calculated based on your disposable income -- the difference between your income and your reasonable living expenses. The payment must cover:
If your income is below the state median, you may be able to complete a 3-year plan. If your income is above the median, your plan must be 5 years. The court will not approve a plan longer than 5 years.
After completing all plan payments, the court enters a discharge under 11 U.S.C. section 1328. This eliminates remaining eligible unsecured debts. You keep your home, car, and other property.
If you received a prior discharge, time bars under section 1328(f) may prevent you from receiving another discharge. Check your eligibility before filing.
The Western District of Missouri has a 40.4% Chapter 13 dismissal rate based on mature 2008-2019 data, with recent years showing rates above 90%. The District of Kansas has a 31.4% rate. These rates matter because a dismissed case means the debtor got no debt relief despite months or years of payments.
Chapter 13 plans last 3 to 5 years. If your income is below the state median, you may qualify for a 3-year plan. If above the median, your plan must be 5 years. During this time, you make monthly payments to a trustee who distributes the money to your creditors.
Yes. One of the main benefits of Chapter 13 is the ability to keep your home and catch up on missed mortgage payments through your repayment plan. The automatic stay stops foreclosure proceedings immediately upon filing.
If your Chapter 13 case is dismissed, the automatic stay ends and creditors can resume collection activity. Any payments you made were distributed to creditors, but you do not receive a discharge. You may be able to file again, but there may be waiting periods.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility.
Free Discharge Screener