What is Chapter 20 bankruptcy?
In certain circumstances you can benefit by filing for Chapter 13 after a Chapter 7 filing. Commonly, known as ‘Chapter 20’ bankruptcy, you will be able to first discharge debt and then develop a repayment plan for the remainder.
Dedicated Los Angeles Bankruptcy Lawyers
OakTree Law attorneys understand the intricacies of bankruptcy and how different approaches can compliment each other. Our legal expertise will help you minimize the debt you must overcome to secure your financial future.
Contact us or call 800-535-1627 if you want to know about your eligibility for combining Chapter 7 and Chapter 13 bankruptcies.
What is Chapter 20 Bankruptcy?
Unofficially titled, Chapter 20 bankruptcy is a complex approach to debt relief. Qualifying homeowners who want to stay in their home may file for Chapter 13 Bankruptcy after the completion of their Chapter 7 bankruptcy. In some cases, the bankruptcies can run concurrently. An In-depth knowledge of bankruptcy law is essential for this strategy, and our Orange County bankruptcy attorneys know full well what it takes to get out from under substantial debt.
Step by Step Bankruptcy
It is necessary that you agree to regular mortgage payments under the terms of the Chapter 7 bankruptcy. Signing a reaffirmation agreement or redeeming the property would negate the benefits of Chapter 20. But after the discharge of unsecured debt, a Chapter 13 can then be filed in order to redeem the property with installments.
Our attorneys can guide you through the process as follows:
- Discharge debt through Chapter 7 filing
- Dispose of liens through Chapter 13 filing
- Discharge debts that could not be discharged under Chapter 7
- Use the automatic stay to develop a repayment plan
- Use terms of Chapter 13 to begin paying off remaining debt
- Bring claims against creditors who violated the terms of Chapter 7
Who Chapter 20 Bankruptcy Helps
The requirements and terms of Chapter 20 are very specific. A lot of time and paperwork will also be necessary. But if you are under the weight of excessive unsecured debt, are behind in mortgage payments and are committed to keeping your home, this approach may be ideal for your family.
Patience is required to complete a Chapter 20. The costs of both bankruptcies may apply. The court will also need to be convinced that you are capable of meeting the new obligations and that you are working in good faith. But our experience can be an asset in rebuilding your security.
Call the Experts – LA & Orange County Bankruptcy Lawyer
Contact us or call 800-535-1627. Our attorneys can assist honest homeowners in the most complex bankruptcies. Let us guide you towards sustainable debt relief.