Itemized Breakdown
Chapter 13 -- Every Expense
The "No Money Down" Reality
Attorney fees paid through the plan. $0 upfront. But you pay the same amount over 3-5 years. And if dismissed (40-50% nationally), fees already paid are gone.
Many high-volume bankruptcy firms advertise "no money down Chapter 13" to attract clients. The attorney's fees are paid through the plan before unsecured creditors receive anything. This creates a perverse incentive: the attorney gets paid regardless of whether the case succeeds. If your case is dismissed after two years, the attorney has already collected $2,000-$3,000 in fees through the plan, while you received no discharge and must start over.
The standing trustee also takes a commission of approximately 7-10% of all plan payments. On a 5-year plan paying $500/month, the trustee commission alone totals $2,100-$3,000. This is money that does not go to your creditors or reduce your debt -- it is the administrative cost of the Chapter 13 system. Compare these costs carefully with the Chapter 7 alternative if you qualify under the means test. For district-level dismissal rates, check how often Chapter 13 cases fail in your area.
Failure scenario: Case dismissed after 2 years = $2,000-$3,000 in attorney fees paid + thousands in plan payments. No discharge. The attorney was paid. You got nothing.
Last updated: March 2026. Not legal advice.
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