(I included the second part of the quote because I could swear I remember someone posting a similar (more in-depth) article on the Chapter-13-in-place-of-Chapter-7 issue in the South but I can't find the post.)
https://www.propublica.org/article/when-you-cannot-afford-to-go-bankrupt?utm_campaign=sprout&utm_med...
A ritual of spring in America is about to begin. Tens of thousands of people will soon get their tax refunds, and when they do, they will finally be able to afford the thing they’ve thought about for months, if not years: bankruptcy.
It happens every tax season. With many more people suddenly able to pay a lawyer, the number of bankruptcy filings jumps way up in March, stays high in April, then declines.
...
In the South, debtors often avoid the up-front costs by filing bankruptcy under Chapter 13. Unlike Chapter 7, which clears debts after a few months, Chapter 13 is a payment plan that usually lasts five years. Lawyers in the South will often start a Chapter 13 for $0 down, allowing their much larger fees (usually $3,000 to $4,000) to be paid through the plan. This provides immediate protection to low-income debtors, but most are unable to keep up with the payments. Once their cases are dismissed, their debts return.
Faced with options like these, many people simply try to muddle through, often under the threat of having their wages seized by creditors.
