Chapter 13s - the Real World

I had lunch today with one of the chapter 13 trustees in Los Angeles.  She had 94 matters this morning on the chapter 13 confirmation calendar.  The whole morning resulted in 22 plan confirmations.

She told me that 57% of the chapter 13 cases filed and assigned to her last month were pro per cases.  These cases have little chance of surviving through confirmation.  In fact, the majority of the pro per cases do not even file the remainder of the schedules, plan etc after the case is started, nor do they appear to be examined at the 341 meeting of creditors, nor make any of the plan payments.  They are simply trying to buy a few more weeks or months before they have to move.  The administrative costs, fiscal and mental are huge. 

The 94 matters today were people who have filed all the schedules, appeared at the meeting of creditors and otherwise generally complied with the chapter 13 rules and requirements.  The failure to get plan confirmation is often due to the failure of the debtor to make the chapter 13 plan payments to date or the regular mortgage or vehicle payments.