Search Site
Menu
What is a “Chapter 20” Bankruptcy?

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.

From offices conveniently located in Athens, Douglasville, GainesvilleLawrenceville, Marietta and  Scottdale,  Jeff Field & Associates is able to help people throughout the Atlanta metropolitan area and beyond. To schedule an appointment call 404-381-1278 or contact us online.
Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    This was a hard thing to do but Chris made it easy and explained everything in a way I understood the process. I would recommend anyone having to go through this to contact this office! Casey was great as well and the communication kept the whole tim...

    Read more

    Beth Carlin

  • google
    5.0/5.0

    The staff made a very stressful situation much easier to cope with. They treated me with kindness and respect. Chris and Laura are very professional and knowledgeable.

    Read more

    Anita York

  • lawyers
    5.0/5.0

    The Entire team at Jeff Field and Associates were so helpful throughout the entire process. They were quick with responses and handled everything. They dont make you feel bad about your decision, and provide very helpful advice. Mr. Fields was always...

    Read more

    Client

  • google
    5.0/5.0

    We started our process in October 2021, the process was fast and easy. Casey Brown was there to answer questions via email expeditiously. In 3 months our case was discharged and we are extremely thankful and excited for the future. This truly was a...

    Read more

    Joan Bunting

  • lawyers
    5.0/5.0

    I enjoyed working with Jeff and his team. They were always there to help and answer any questions that I had in a timely manner. I highly recommend Jeff Fields and Associates.

    Read more

    Client

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form