Hale Antico Success on Different Kinds of Bankruptcy
It’s all so confusing. Chapters. Trustees. Numbers, mostly odd. 341. Meeting? So let’s break down the different kinds of bankruptcy. And the Hale Antico success rate is about the best at the two main kinds.
Firstly, what’s are the different kinds of bankruptcy? There are about six, but only two that really stand out. These types are called “chapters.” So, there are two main chapters, or kinds, of bankruptcies people typically do (or “file”). These are Chapter 7 and Chapter 13.
Differences between Chapter 7 Bankruptcy vs Chapter 13
In short, the differences between Chapter 7 vs Chapter 13 bankruptcy is that in the Chapter 7 you don’t pay back debt, and in Chapter 13 you do, like debt consolidation. Who’d want to do Chapter 13, right? Truth is, almost 10,000 people in the Los Angeles are filed Chapter 13 last year for a reason, about a quarter of all cases filed. There’s a reason they’re doing that, and it’s not because they love paying debt. Don’t dismiss Chapter 13; it has its benefits, like saving your property and killing interest.
Let’s look at the last complete year before this was written, 2017. There were 27,574 Chapter 7 cases filed, and 9,299 new Chapter 13 cases (there were 364 other types, so we won’t focus on them). That’s a total of 36,873 new cases last year, and Chapter 7 bankruptcy accounted for the majority, or about 75% of them.
Chapter 7 Makes Up Most FilingsPeople file more Chapter 7 bankruptcy cases than any other chapter. Does that means it’s better? Not necessarily. Every situation is different. Not everyone qualifies for Chapter 7 bankruptcy, and if you do, be careful what you wish for. You can lose assets, including house, car, or the ability to take to court in the future someone who’s already wronged you.
Chapter 7 Debt Limits
People ask, “how much do you have to be in debt to file Chapter 7” and “is there a debt limit to Chapter 7” and the answer to both “there is no magic number.” That is, you can file Chapter 7 bankruptcy with only a dollar of debt, though that’d be kind of dumb. And you can have $55,000,000 of debt and still file Chapter 7 without a debt limit. Again, just because you can do something doesn’t mean you should. Meet with a qualified Antelope Valley bankruptcy attorney to find out what’s best for you.
Chapter 7 Bankruptcy Success Rates
The different kinds of bankruptcy cases have differing levels of difficulty.
For example, over the ten years between 1/1/2007 – 12/31/2016, we filed 1,319 Chapter 7 bankruptcy cases.
Of those filings, 1,301 were discharged between 2007 & 2017 (adding a year to catch the discharges of cases filed near the end of 2016).
That’s a Hale Antico success rate of 99% in Chapter 7 cases.
Where else in life can you get a 99% chance of success?
* past performance not a promise or guarantee of future performance
Chapter 13 Bankruptcy Success Rates
But wait, there’s more.
Did you know that Chapter 13 bankruptcy cases are harder? Much, much harder.
Chapter 13 bankruptcy is so difficult a lot of bankruptcy attorneys don’t even do them. They just tell everyone that they qualify for Chapter 7 bankruptcy and hope for the best.
A Judge’s Statistics for Chapter 13 Overall
Here are some hard fast numbers about Chapter 13 cases:
Los Angeles and the surrounding area is in the Central District of California. According to one Central District judge, “Nationwide, only one-third of chapter 13 cases succeed.” So that’s 33%, in all of America.
But he goes on: “A review of the Court’s records a few years ago indicated that only 3% of chapter 13 cases in this district resulted in a completed plan with chapter 13 debtors making all plan payments.” So locally, only 3% actually succeed.
"Only 3% of chapter 13 cases in this district resulted in a completed plan with chapter 13 debtors making all plan payments."
Even worse? The judge writes about his division that “[t]he failure rate rises to nearly 100% for chapter 13 cases in which the debtor is not represented by an attorney. In other words, nearly every case filed by a chapter 13 debtor who does not have an attorney fails [to] successfully complete a chapter 13 case.” So that’s a 0% success rate without a lawyer. (Source: WJ Standing Order, pp. 5-6).
The Hale Antico Success Rates are a Tad Higher
While 0% is terrible, let’s assume you decided to choose a bankruptcy attorney for your Chapter 13 case. So how do we match up to the 3% competition?
The economy crashed in 2008, and Chapter 13 filings really started picking up in fall of that year as the Great Recession hit. Chapter 13 filings started peaking in the Central District until 2012. Technically, they were still above 10,000 until 2013, but as of this writing, many five-year 2013 plans haven’t completed yet. So let’s use 2008-2012 filings. This is a time when it was extremely busy for Los Angeles bankruptcy lawyers, and of the different kinds of bankruptcy cases, Chapter 13 cases really took off.
From 1/1/2008 through 12/31/2012, the Antico Law Firm filed 189 Chapter 13 bankruptcy cases in the Central District of California, where the judge wrote about. Here’s the web search to show it:
Then, we took the same filing dates, and this time added discharge dates between 3 and 5 years later (actually 6, because there’s finishing paperwork to be filed after year 5, but before the discharge). And we got 132 Chapter 13 cases discharged.
So that’s 132 discharges (success) out of 189 filed, during the busiest Chapter 13 period in the past 20 years.
132 / 189 = 70% for a Hale Antico success rate in Chapter 13 cases
Chapter 13 Success Rates
Conclusion: our Chapter 13 success rate is over 20 times higher than the local average
Contact us now.