Houston Bankruptcy Statistics

If you are considering Chapter 13 bankruptcy in Houston, these statistics should inform your decision:

• 65.1% of Chapter 13 cases in the S.D. Tex. are dismissed. That means many filers spent months or years making payments to a trustee and got no debt relief at the end.
• 30.6% of filers had a previous bankruptcy case. This "prior filer" rate suggests many people are cycling through the system without achieving lasting relief.
• An estimated 2,622 cases may involve 1328(f) eligibility issues. These are cases where the debtor may have been ineligible for a discharge from the start.
• Only 10.8% of filers represent themselves. Quality legal representation is critical to completing a Chapter 13 plan.

The Prior Filer Problem

30.6% of S.D. Tex. filers had a prior bankruptcy case. This cycling through the system suggests the first filing failed to provide lasting relief - and raises questions about whether filers were properly screened under section 1328(f).

2,622 Potential 1328(f) Violations

An estimated 2,622 cases in the S.D. Tex. may involve potential eligibility violations under 11 U.S.C. section 1328(f) - filings where the debtor had a prior discharge within the statutory time bar and could never have received a new discharge. These cases consume court resources and cost consumers time and money for a legally impossible outcome.

Representation Matters

With only 10.8% of filers representing themselves, the data confirms that legal representation is the norm in the S.D. Tex.. Given the 65.1% dismissal rate, the quality of that representation is critical to whether a Chapter 13 plan succeeds or fails.