Chicago Chapter 13 Bankruptcy Data

Massive Volume, Massive Failure

The Northern District of Illinois processes more Chapter 13 cases than almost any other district in the country. The numbers are staggering:

• 238,789 cases filed over 17 years -- more than most states combined
• 137,366 dismissed -- each representing a family that invested years in a failing plan
• Only 67,571 discharges -- a 28.3% success rate
• 38.4% prior filer rate -- nearly 4 in 10 have failed before and are trying again
• 7,607 estimated 1328(f) violations -- cases that could never legally succeed

The Acceleration

From 2008 to 2020, the dismissal rate fluctuated between 56% and 72%. Then it accelerated dramatically:

• 2020: 60.4% -- within historical norms
• 2022: 82.3% -- a sharp jump
• 2023: 91.1% -- approaching total failure
• 2024: 94.1% -- virtually no one succeeds

This acceleration from the 60s to the 90s in just four years mirrors patterns seen in other collapsing districts like EDNY and NDGA.

38.4% of NDIL filers have filed before. The prior filer rate peaked at 48.3% in 2020 -- meaning nearly half the docket was repeat filers. This creates a self-reinforcing cycle:

• Consumer files Chapter 13 with inadequate support
• Case is dismissed after months or years
• Consumer's financial situation has not improved
• Consumer files again -- now as a "prior filer"
• Cycle repeats, often with the same attorney and same outcome

An estimated 7,607 of these repeat filings may have violated 1328(f) time bars -- meaning discharge was legally impossible from the start.