Chapter 13 Bankruptcy in St. Louis

Q: How long is a Chapter 13 repayment plan?

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.

Q: Can I keep my house in Chapter 13?

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.

Q: What happens if my Chapter 13 is dismissed?

If your Chapter 13 case is dismissed, the automatic stay ends and creditors can resume collection. You lose the protection of the bankruptcy court. Any payments made were distributed to creditors, but you do not receive a discharge.

Chapter 13 lets you keep your property while repaying debts over 3-5 years. But in the Eastern District of Missouri, the dismissal rate is significant -- meaning many filers never complete their plan.

61.9% of E.D. Mo. Chapter 13 cases are dismissed

What Is Chapter 13?

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:

Saving a home from foreclosure by catching up on missed mortgage payments
Keeping a car while catching up on auto loan payments
Paying tax debts or other priority debts over time
Protecting non-exempt property that would be lost in Chapter 7
Filers who do not qualify for Chapter 7 under the means test

E.D. Mo. Dismissal Data

A dismissed Chapter 13 means the debtor spent months or years making payments but received no discharge -- no debt relief.

Out of 58,254 Chapter 13 cases filed in the Eastern District of Missouri between 2008 and 2024:

61.9% were dismissed before plan completion
38.1% achieved a successful discharge
41.3% of filers had a prior bankruptcy case
2.8% of filers represented themselves (pro se)

Why it matters: A dismissed Chapter 13 means the automatic stay ends, creditors resume collection, and the debtor receives no discharge. Strong legal representation is critical to completing a Chapter 13 plan. View full statistics.

How a Chapter 13 Plan Works

The Monthly Payment

Your monthly payment is calculated based on your disposable income. The payment must cover:

Priority debts in full: Recent taxes, child support arrears, attorney fees
Secured debt arrears: Mortgage arrears, car loan arrears
Trustee fees: Typically around 10% of plan payments
Unsecured creditors: Whatever remains goes to credit cards, medical bills, etc.

Plan Duration: 3 or 5 Years?

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.

What Happens at the End?

After completing all plan payments, the court enters a discharge under 11 U.S.C. section 1328. This eliminates remaining eligible unsecured debts.

If you received a prior discharge, time bars under section 1328(f) may prevent you from receiving another discharge.

Chapter 13 Timeline

Before filing: Complete credit counseling ($15-25). Gather income documentation, tax returns, and debt records.
Day 1 -- Filing: Petition filed. Automatic stay takes effect. Foreclosures, repossessions, and garnishments stop immediately.
Day 14: Proposed plan filed (if not filed with the petition).
Day 30: First plan payment due to the trustee.
Day 30-45: 341 meeting of creditors.
Day 45-120: Confirmation hearing. The court decides whether to approve your plan.
Years 1-5: Monthly payments to the trustee.
Plan completion: Complete debtor education course. Court enters discharge.

Frequently Asked Questions

What is the Chapter 13 dismissal rate in St. Louis?

The Eastern District of Missouri has a 61.9% Chapter 13 dismissal rate. These rates matter because a dismissed case means no debt relief despite months or years of payments.

How long is a Chapter 13 repayment plan?

Plans last 3 to 5 years. If your income is below the state median, you may qualify for a 3-year plan. If above, your plan must be 5 years.

Can I keep my house in Chapter 13?

Yes. You can keep your home and catch up on missed mortgage payments through your plan. The automatic stay stops foreclosure immediately.

What happens if my Chapter 13 is dismissed?

The automatic stay ends, creditors resume collection, and you receive no discharge. You may be able to file again, but there may be waiting periods.