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 Kevin Gipson, New Orleans, Louisiana bankruptcy lawyer.