Self-Represented Parties – The Numbers
Chapter 13 Updates
This year, we discovered a programming error in the national bankruptcy case filing system, CM/ECF, which caused the chapter 13 confirmation rate to be slightly under-reported for 2013 and 2014. The programming error was reported to the Administrative Office of the United States Courts (AO) and corrected. In the last report, we stated that there were only three plan confirmations out of the chapter 13 self-represented filings in 2013. There were actually 25 confirmations from chapter 13 self-represented filings, as compared to 2,810 plans confirmed for chapter 13 attorney-represented filings in 2013. In 2012, of chapter 13 self-represented filings, there were 33 instead of 24 confirmed plans. These 33 confirmed plans, were dwarfed in number compared to the 3,842 plans confirmed for chapter 13 attorney-represented cases.
The corrected numbers did not change the conclusion drawn in previous reports, which is still that an extremely small percentage of the self-represented chapter 13 filings reach plan confirmation (Figure 10). This abysmal success rate continues every year, illustrating why representing oneself in chapter 13 is either a mistake or a tactical decision. As the attorney fee can be paid through the plan over three to five years, any debtor that is seriously seeking the advantages of chapter 13 should consult a chapter 13 attorney. Instead, over the peak filing years between 2009 and 2013, such as in 2011, the number of pro se filings hovered around half of chapter 13 filings. (Figure 11).
Less than half of all pro se cases closed in 2014 received a discharge, while over 82 percent of attorney-represented cases received a discharge (Figure 9). Although more than half of self-represented filers receive no financial relief from the process, their credit reports still reflect that they have filed for bankruptcy.
The above bar graph emphasizes the overwhelming number of chapter 13 incomplete pro se cases dismissed each year, as compared to the number of attorney-represented incomplete chapter 13s. Just as in chapter 7, self-represented parties are more likely to have their incomplete chapter 13 cases dismissed than attorney-represented debtors. This trend is consistent year after year.
The number of pro se cases that were dismissed prior to plan confirmation in 2014 remains notably higher than attorney-represented cases also dismissed prior to plan confirmation (Figure 13). Even for pro se cases that make it through plan confirmation, the number that gets dismissed remains high (Table 4). This trend is also consistent year after year, demonstrating that even savvy pro se debtors are perhaps encountering difficulty administering their own chapter 13 cases (e.g., knowing whether to file motions to modify the plan, object to claims, or strip liens).
