What’s “Chapter 20″ Bankruptcy?

If you’ve been considering filing for bankruptcy and have been looking around for more information, there’s a good chance you’ve come across the term “Chapter 20″ bankruptcy at some point. However, if you know anything about bankruptcy laws, then you know that there’s no such thing as Chapter 20, and you probably are wondering what people are talking about. If you have any questions about bankruptcy, and whether or not you can benefit from filing for it, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800.

The Mythical Chapter 20

While not an actual chapter, the term “Chapter 20″ describes the filing of Chapter 7 bankruptcy to get rid of unsecured debts, followed by filing for Chapter 13 as a means of paying off mortgage debts. The term is really just a clever combination of Chapters 7 and 13 to describe a fairly specific yet still common type of bankruptcy procedure.

The Bankruptcy Reform Act of 2005 sought to limit the number of “Chapter 20″ bankruptcies by making it difficult to file for successive bankruptcies. You are only able to file for Chapter 13 every two years, and three years must have passed between filing for Chapter 7 and filing for Chapter 13. However, knowledgeable bankruptcy attorneys will know ways to best take advantage of bankruptcy filings.

Contact Us

If you’re interested in knowing more about “Chapter 20″ bankruptcies and whether or not you could file for one, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800.