Michigan Bankruptcy Court/ Chapter 11

Detroit Chapter 7 and Chapter 13 Consumer Bankruptcy Filings

 I, Walter Metzen, will provide, free of charge as part of your free initial Bankruptcy Analysis, a means test calculation to determine if you are eligible for Chapter 7 Bankruptcy.  Nearly 90% of the people who walk through my door are eligible to file a Chapter 7 Bankruptcy in Michigan and get a permanent discharge of their debt. With Chapter 13 Bankruptcy in Michigan, we can develop and affordable repayment plan to fit every budget.

 Contact me, Michigan bankruptcy attorney Walter Metzen to learn more about how I can help you get a Fresh Financial Start!.

Outcomes of Chapter 11 Cases:
U.S. Trustee Database Sheds New Light on Old Questions

Written by:
Gordon Bermant
Burke, VA

Ed Flynn Executive
Office for United States Trustees


Policymakers and commentators frequently remark on the lack of systematic, detailed, statistical information about the fate of entities in chapter 11. Even very basic facts such as the proportion of cases confirmed, converted or dismissed, and the time intervals between filing and these three outcomes, have not been readily accessible.

Here we present a brief first look at data obtained from the Fee Information and Collection System (FICS) database maintained by the Executive Office for U.S. Trustees (EOUST) to support the U.S. Trustee Program’s collection of quarterly fees from chapter 11 cases. The FICS database is the most reliable and comprehensive single source of basic infor-mation about chapter 11 cases that we have seen. The FICS database is updated monthly with case information transmitted from each region. We anticipate that analyses of the data in FICS will be of considerable utility in answering a number of practical questions about chapter 11 issues.

We have begun to compare the data in FICS with the same fields in the bankruptcy data compiled by the Administrative Office of the United States Courts (AOUSC). The congruence of the two data sources has been encouraging. For example, FICS contains data on 131,089 chapter 11 filings between January 1, 1989 and December 31, 1995. The AOUSC data show 129,304 chapter 11 cases for the same period, excluding filings from Alabama and North Carolina. Part of this 1.4 percent difference is due to the inclusion in FICS of cases that were converted into chapter 11 from other chapters.

Figure 1 Outcomes of Chapter 11 Cases (originally filed 1/89-12/95)


Overview of Outcomes

Figure 1 shows that about 70 percent of the FICS chapter 11 pie for cases filed between 1989 and 1995 contains two equal pieces: 35.3 percent of the cases were dismissed and 35.4 percent were converted. Confirmed cases composed approximately 26 percent of the total, two percent of the cases remained open as of 12/1/97, and the remaining 1.4 percent are reported by FICS as closed by the court but without further specification as to outcome.

Confirmation Rates

Heretofore, the most comprehensive source of information on national confirmation rates of cases of all sizes was a 1989 report by the AOUSC on cases filed in 15 judicial districts between 1979 and 1986. Two salient facts about confirmation rates emerged from that study: first, the estimated annual confirmation rate over the sampled period was 17 percent. Second, a trend of increasing annual confirmation rates was apparent between 1982 (13 percent) and 1986 (22 percent). This led to the prediction that confirmation rates would continue to rise during the 1980s.

We are now able to continue the time series of annual confirmation rates using FICS data. The graph in Figure 2 shows the rates from the AOUSC study for 1979/80-1986 and from FICS for 1989-1995.

The national trend evident in the AOUSC data has been sustained in the FICS data. The average annual confirm-ation rate over the period measured in FICS, approximately 27 percent, is about twice the rate that was achieved in the early 1980s. The data for 1989-1995 include minor adjustments to include expected future confirmations of cases that are still open and closed cases for which FICS did not report the disposition.

Figure 2 Estimated Confirmation Rates Chapter 11 Cases Filed 1979 - 1995.

The strong national trend toward increased chapter 11 confirmation rates requires substantial analysis and interpretation to discern its causes. Some of the required additional information will be available in FICS, some will require linking FICS data with AOUSC databases, and some will require developing new databases gathered from diverse sources.

Intervals from Filing to Confirmation

In addition to a higher than expected con-firmation rate, the FICS data show a clear trend toward faster con-firmations in chapter 11 cases. Figure 3 displays the 20th, 50th and 80th percentiles of the distribution intervals from filing to confirmation for cases that were confirmed from 1989 to 1997. Viewed from this national perspective, the greatest changes have taken place among the cases slowest to confirm, e.g., those at the 80th percentile of each annual distribution. While intervals at the 20th percentile have decreased by approximately 18 percent, and intervals at the 50th percentile (median) by about 27 percent, intervals at the 80th percentile have decreased by about 37.


Figure 3 Filing to Confirmation Intervals - Cases Confirmed 1989-1997.

It is one thing to describe the trends toward more and faster confirmations, and quite another to explain them. Bankruptcy experts doubt-less will have strong opinions about why chapter 11 cases are confirming faster and at a higher rate. These opinions should be treated as hypotheses to test with objective information and analysis.


Figure 4 - Filing to Conversion Intervals - Cases Converted 1989-1997.

The increasing speed to confirmation on the national level needs to be disaggregated in several ways. We need to know, for example, how con-firmation speed varies with the size of the case; there are good reasons to believe that larger cases are more likely to confirm and also more likely to confirm quickly than are smaller cases. We also need to study how confirmation rates and intervals vary among judicial districts, U.S. Trustee regions, and by assigned bankruptcy judge to assess the influence of local practices and to identify best practices wherever they may be found. For example, preliminary analysis shows that the confirmation rates range from 13 to 38 percent among the 21 U.S. Trustee regions, and from 7.4 to 59.2 percent among the bankruptcy judges who handled at least 200 chapter 11 cases between 1989 and 1995. Further, the average time from filing to confirmation varied from 478 days to 860 days among the U.S. Trustee regions, and from 292 days to 1,092 days among the judges who have confirmed more than 100 chapter 11 cases since 1989.

Intervals from Filing to Dismissal or Conversion

Confirmation is not a necessary condition for success in chapter 11. Dismissal sometimes follows a successful accommodation between a debtor and its creditors without the need for a court-approved plan of reorganization. It is also clear that moving appropriate cases quickly from filing to dismissal or conversion into chapter 7 is a per se benefit in terms of judicial administration, a reduction in the length of the queue for other cases awaiting judicial action, and a quickening of the time required for creditors to gain liquidation value from the bankrupt estate.


Figure 5 - Filing to Dismissal Intervals (Cases Dismissed 1989-1997)

The FICS database allows us also to assess trends in the durations from filing to dismissal or conversion. Figures 4 and 5 show these trends at the 20th, 50th and 80th percentiles for cases converted or dismissed from 1989 to 1997.

As was seen with the interval between filing and confirmation, the intervals from filing to conversion or dismissal also have shortened considerably. Most of the overall improvement in case disposition times during this period occurred during 1990-1991, and from 1995 to 1997.

Figure 6 summarizes the percentage reductions from 1989 to 1997 in the intervals from filing to each type of termination.

Figure 6: Percentage Reduction in the Interval from Filing to Termination
(Comparison of Cases Terminated in Calendar Years 1989 and 1997)


Termination Percentile
Outcome of Case


The graphs and summary table show unequivocally that terminations of all types, particularly dismissals, now occur faster than they did eight years ago. This is a national trend that no doubt has many local variations. Attributions of causality for these reductions in any district, as have been published recently, need to be evaluated in light of the larger national trend.


Information in the FICS database will advance the understanding of the course of chapter 11 cases through the bankruptcy system in recent years. We have much to do to derive all possible benefit from this useful source.

During the next several months we will refine our analyses of the FICS database, explore the opportunities and challenges of linking FICS data with other bankruptcy data sources, and explore ways to make much of the FICS data available to other analysts. In the meantime, we welcome correspondence from ABI Journal readers about these preliminary findings.


Bankruptcy Basics - For Cases Filed on or after October 17, 2005 (pdf)
Bankruptcy Basics - For Cases Filed before October 17, 2005 (pdf)

Contact me, Detroit bankruptcy lawyer Walter Metzen today to schedule your free initial consultation. I also offer clients flexible appointment times and same day appointments if necessary. Get in touch with me today to learn how filing bankruptcy may be beneficial for you and your family. Why should you hire a Board Certified Bankruptcy Specialist? Click Here. My office has handled over 10,000 bankruptcy cases in Michigan and will apply this experience to your case as well. My office prides itself on fast, detailed, personal service. There are many different aspects to a bankruptcy case. Some of the different aspects are listed on the links below for you to explore. If you have any questions while exploring this site or would like a free personal bankruptcy consultation, contact my office at (313) 962-4656 or toll free 888-777-FILE.

 Contact me, bankruptcy attorney Walter Metzen to learn more about how I can help you get a Fresh Financial Start!.

 Be sure to Obtain a copy of your Credit Report after your Michigan Bankruptcy Filing and check it for Mistakes.

Contact me, bankruptcy attorney Walter Metzen to learn more about how the new Chapter 7 bankruptcy law may affect your case. I offer a free initial consultation so we can discuss your case personally.

We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code. Let us help you decide if bankruptcy is right for you.

Bankruptcy attorney Walter Metzen represents clients throughout Southeast Michigan, including the communities of Detroit, Southfield, Warren, Roseville, Farmington Hills, Ann Arbor, Belleville, Canton, Clinton Township, Dearborn, Dearborn Heights, Hamtramck, Highland Park, Holland, Howell, Lincoln Park, Livonia, Macomb, Northville, Plymouth, Port Huron, Redford, Rochester, Saginaw, Southfield, Sterling Heights, Taylor, Trenton, Troy, Westland, Wyandotte, Ypsilanti, Mount Clemens, Howell, Oakland County, Macomb County, Wayne County, Washtenaw County, Livingston County, and all of the surrounding areas.



Detroit Bankruptcy Lawyer Detroit Bankruptcy Lawyers Walter Metzen Detroit Bankruptcy Lawyer Detroit Bankruptcy Attorney Detroit Bankruptcy Attorneys Filing Bankruptcy in Michigan Lawyer Filing Bankruptcy in Michigan Declare Bankruptcy Detroit Fresh Start Bankruptcy Detroit Southfield Michigan Bankruptcy lawyers Declaring Bankruptcy in Michigan Michigan Credit Counseling Lawyer Board Certified Bankruptcy Lawyers Warren Bankruptcy Lawyer Walter Metzen Bankruptcy Lawyer Attorney for Bankruptcy in Wayne County Bankruptcy Lawyer Oakland County Detroit Chapter 7 Lawyer  Southfield Michigan Bankruptcy Lawyer Michigan Bankruptcy Specialist Macomb County Bankruptcy Lawyer Fresh Start Bankruptcy Lawyers of Michigan Birmingham Michigan Bankruptcy Lawyers Michigan Bankruptcy Helpline Oakland County Michigan Bankruptcy Specialists Michigan Chapter 7 Bankruptcy Lawyers Michigan Fresh Start Bankruptcy Law Office Wayne County Debt Relief Agency Michigan Credit and Debt Counseling Lawyers Detroit Chapter 7 Bankruptcy Board Certified Specialist Walter Metzen Detroit Bankruptcy Attorneys Helping People File Bankruptcy Detroit Credit Counseling and Bankruptcy Services Consumer Bankruptcy Attorney in Michigan Detroit Michigan Bankruptcy Attorney Detroit Michigan Bankruptcy Lawyer Filing a Personal Bankruptcy How to declare personal bankruptcy in michigan How to File Bankruptcy in Detroit Declaring Bankruptcy in Macomb County Michigan Detroit Bankruptcy Court Directory Best Bankruptcy Lawyer in Detroit Michigan Attorney Walter Metzen Online Help Filing Bankruptcy In Detroit Michigan Michigan Chapter 13 Bankruptcy Lawyers Board Certified Specialist Detroit Chapter 13 Bankruptcy Lawyers Stop Foreclosure Repayment Plan Chapter 7 Lawyers In Detroit Wayne County Michigan Detroit Credit Counseling Information Detroit Credit Counseling Debt Settlement and Bankruptcy Lawyers serving Metro Detroit Metroit Detroit Bankruptcy Lawyers Consumer Bankruptcy Specialist Walter Metzen Board Certified by the American Bankruptcy Institute Detroit Debt Relief Agency Helping People File Bankruptcy in Michigan The Law Office of Walter Metzen Michigan Bankruptcy Lawyers Fresh Start Bankruptcy Law Office Metro Detroit Michigan Bankruptcy Law Firm Serving all of Metropolitan Detroit Walter Metzen Consumer Bankruptcy Specialist Certified by the American Bankruptcy Institute Wayne County Bankruptcy Attorneys Southfield Bankruptcy Attorneys Consumer Bankruptcy Specialists Oakland County Chapter 7 and Chapter 13 Bankruptcy Lawyer Certified Specialist File Personal Bankruptcy in Michigan Filing Chapter 13 Bankruptcy in Michigan Declaring Chapter 7 Bankruptcy in Michigan Legal Help Filing Bankruptcy in Michigan Stopping Foreclosure in Michigan Help Filing Michigan Bankruptcy Walter Metzen Bankruptcy Lawyer Michigan Bankruptcy Michigan Bankruptcy Lawyers Michigan Bankruptcy Attorneys Helping Consumers get a FRESH START Macomb County Credit Card Lawyers Bankruptcy and Debt Settlement Michigan Bankruptcy Credit Counseling and Debt Negotiation Attorneys Royal Oak Bankruptcy Lawyers Wyandotte Michigan Bankruptcy Lawyers Fresh Start Bankruptcy Lawyers of Michigan. How to Declare Bankruptcy in Michigan Michigan Bankruptcy and Credit Counseling Lawyers Michigan Credit Card Relief Lawyers Fresh Start Bankruptcy Lawyers of Detroit Michigan Credit and Debt Counseling Bankruptcy Lawyers of Michigan Lawyers Detroit Bankruptcy Bankruptcy Lawyers of Michigan Walter Metzen Board Certified Consumer Bankruptcy Specialist 888-4WALTER Michigan Bankruptcy Centers Michigan Bankruptcy Counselors Michigan Bankruptcy Court Directory Fresh Start Michigan Bankruptcy Law Offices Michigan Bankruptcy Law Center Michigan Bankruptcy Laws Filing Bankruptcy in Michigan Michigan Bankruptcy Attorney Walter Metzen Specialist in Consumer Bankruptcy Laws Board Certified by the American Bankruptcy Institute Michigan Bankruptcy Online Michigan Bankruptcy Services. Michigan Chapter 13 Bankruptcy Attorneys Metro Detroit Chapter 7 Bankruptcy Lawyer Michigan Credit Counseling Credit Counselors of Michigan Michigan Debt Assistance Michigan Debt Relief Agency Fresh Start Bankruptcy Law Center Motor City Bankruptcy Laws Stop Wage Garnishment in Michigan Detroit Bankruptcy Lawyer Walter Metzen Consumer Bankruptcy Attorney Walter Metzen Michigan Fresh Start Lawyers Downriver Bankruptcy Lawyer Michigan Fresh Start Bankruptcy Offices of Detroit Bankruptcy Attorneys Detroit Filing Personal Bankruptcy in Michigan Filing Personal Bankruptcy in Michigan Fresh Start Bankruptcy Lawyers Fresh Start Bankruptcy Law Office of Detroit


 Content Footer