By Ullian Associates of The Law Firm of Ullian & Associates, P.C. on June 2, 2015
You may have heard the term "Chapter 20" bankruptcy before. There is no Bankruptcy Code section 20 and you cannot file a Chapter 20 bankruptcy, it is a euphemism for the filing of a Chapter 13 bankruptcy after receiving a discharge in a Chapter 7 case (7 + 13 = 20). Chapter 20 bankruptcies are a tool to reorganize debt. Someone may choose a Chapter 20 because a certain unsecured debt needs to be eliminated immediately, but then the Debtor can use a Chapter 13 Plan to pay back secured or priority debt, such as mortgage arrears or tax liabilities, over a three to five year period, Chapter 20s are rarely done because any more because if you received a discharge in a Chapter 7 bankruptcy, you cannot get a discharge under a Chapter 13 for four years.
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