What Is A Chapter 20 Bankruptcy

It is not technically a chapter of bankruptcy but rather a valid technique of filing a chapter 7 case and following it with a chapter 13 case. Four years must pass between the filing of a chapter 7 and the filing of a chapter 13 for a discharge to be available in the chapter 13. Chapter 20 is not an official chapter under the bankruptcy code but a strategy where two bankruptcies are filed in quick succession a chapter 7 followed by a chapter 13 to resolve financial problems that cannot be adequately dealt with by filing under just one.

what is moore痴 law what is io t what is ira rollover what is needed to get prequalified for a mortgage what is life insurance definition what is rebate on a mortgage loan what is ira eligible gold what is contractual liability insurance

What Chapter 20 Bankruptcy Really Means Sawin Shea

Blog What Is A Chapter 20 Bankruptcy

Chapter 20 Bankruptcy Where Do I Find It How Do I Use It

What Is A Chapter 20 Bankruptcy San Antonio Bankruptcy Attorney

Chapter 20 Bankruptcy What Is It And What Does It Mean Georgia Bankruptcy Law Networkgeorgia Bankruptcy Law Network

Chapter 20 Bankruptcy In California

For some people chapter 20 bankruptcy is the best path to debt relief.

What is a chapter 20 bankruptcy. If you go looking for chapter 20 in the bankruptcy code you might be searching for a long time. While it s easy to find codes for chapter 7 chapter 11 and chapter 13 bankruptcy it might end up proving impossible to find any information in the u s. Most consumers are familiar with both chapter 7 and chapter 13 bankruptcy however most have never heard of a chapter 20 bankruptcy. Chapter 20 bankruptcy involves the discharge of personal liability as part of a chapter 7 case as well as the removal of a mortgage lien as part of a subsequent chapter 13 case.

Since bankruptcy reform in 2005 someone who files a chapter 13 right after their chapter 7 doesn t get a discharge in the chapter 13 case. No discharge in chapter 20. For example if a person is behind on the mortgage has significant non dischargeable debt. Legal code about chapter 20 bankruptcy.

Here s the benefit of filing back to back bankruptcy cases. A chapter 20 bankruptcy isn t an actual bankruptcy type. Some debtors have financial problems that are not completely solved by either a chapter 7 or chapter 13 bankruptcy in certain situations filing a chapter 13 bankruptcy immediately after completing a chapter 7 bankruptcy informally referred to as chapter 20 might provide more relief than filing a chapter 7 or chapter 13 alone. Chapter 20 is a creation of bankruptcy practitioners to describe the filing of a chapter 7 liquidation bankruptcy and then a quick filing of a chapter 13 repayment bankruptcy.

Why would anyone want to file two bankruptcy cases. Chapter 20 bankruptcy can be a strategic financial plan for debt relief. But it isn t for everyone. What is chapter 20 bankruptcy.

It s an informal name for the practice of filing for chapter 13 bankruptcy immediately after completing a chapter 7 case. That is a good question and there are some good answers for it. If you have non exempt assets that you wish to protect they will not survive the process. A debtor can discharge wipe out unsecured debts such as credit card balances in chapter 7.

Sometimes financial problems are too complex to be solved by chapter 7 or chapter 13 alone. The bankruptcy code does not have a chapter 20 option. It might seem odd to file two bankruptcies but there are situations where this could make a lot of sense. This is because the first step in a chapter 20 bankruptcy is filing chapter 7 and chapter 7 bankruptcy involves selling off any non exempt assets.

That s where chapter 20 comes in. A chapter 7 allows for the elimination of debt and the chapter 13 provides an affordable repayment plan on remaining debt.