There are occasionally times when individuals have financial problems that cannot be entirely solved by filing a Chapter 7 or Chapter 13 bankruptcy. In these unique situations, it may be best to file a Chapter 7 bankruptcy and then immediately file a Chapter 13 bankruptcy, informally known as a “Chapter 20.”
Why would you do this? Sometimes debtors have an excessive debt load that precludes them from filing a Chapter 13 case, but at the same time they are delinquent on a house or car loan. In Chapter 7 cases, the creditors do not have to allow you to “catch up” on these arrearages. They can simply file for relief and then proceed with the steps to take back possession of their property (through foreclosure, repossession, etc.). In a Chapter 13 bankruptcy you are allowed to cure these arrearages and protect your property.
In this situation, debtors could file for Chapter 7 bankruptcy and reduce their overall debt load once they receive a discharge. Then, hopefully, they would qualify for Chapter 13 and would be allowed to propose a plan to cure their arrearages and pay these items back over a period of 3 to 5 years. Debtors would not, however, be eligible for a discharge in this Chapter 13 having just received a discharge in the Chapter 7. The second filing would allow the debtors to cure arrearages on a house or car loan or allow them to pay down on debts that were not eligible for discharge under the Chapter 7, such as student loans and/or tax debt.
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5.0/5.0Chris and Laura have been amazing! The process seamless! All of my questions and needs were addressed! I highly recommend this office for your BK needs!
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This is the best Bankruptcy Lawyers ever They treat you with respect and do not judge you for the mistakes you made.Mr.Sleeper and MS.Brown are the best they answered every question I had and if I couldn't reach them they always responded to my voice...
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Jeff Fields and Laura Everett were wonderful! It was hard but they were so helpful and with me every step of the way. They answered every question and were very accessible. I hope noone has to experience this road, but if you do, try Jeff Field & Ass...
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I had my concerns about filing initially, but Jeff walked me through the process and with his calm demeanor, made this process not at all as daunting as I initially thought it would become. The process flowed effortlessly and Cassie (a BIG shout out ...
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Due to medical expenses and serious physical problems I had to file bankruptcy. I was nervous and really depressed about the whole situation. I called Jeff Field & Associates and felt at peace after talking to a lawyer. I decided to go with them and ...
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