What Is A Chapter 20 Bankruptcy?

What is a Chapter 20 bankruptcy?

The fact is there is no Chapter 20 of the Bankruptcy Code.

Chapter 20 is an expression used by attorneys to describe a situation where a Chapter 7 bankruptcy is filed for a debtor followed by a Chapter 13 bankruptcy.

When would this process be used?

From time to time a debtor will come in with too much debt to file a Chapter 13 bankruptcy.   Since the debt limits for the 13 are too high, it is sometimes necessary to file a Chapter 7 bankruptcy to get rid of the debt that is either unsecured, or that is secured debt where the debtor no longer wants to keep the secured property.

After the Chapter 7 has been discharged, a Chapter 13 will be filed in order to propose a monthly payment plan to pay the remaining debt.

A “Chapter 20” is a complex process and may not be the best approach for your situation.

You should contact an experienced bankruptcy attorney to discuss your options.

by , New Orleans, Louisiana bankruptcy lawyer.

About Kevin Gipson, Attorney at Law

I am an attorney licensed in all State and Federal Courts in Louisiana. I practice in the Greater New Orleans Area and work with Consumers to help them with their debt problems. My primary areas of practice are Chapter 7 and Chapter 13 bankruptcy and Student Loan Law.
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