What Is “Chapter 20” Bankruptcy?

The United States Bankruptcy Code can be confusing for the uninitiated, and it’s no wonder; most people are not familiar with the often small differences between Chapters 7, 9, 11, 12, 13, and 15. Adding to this confusion is the oft-cited, oft-misunderstood term “Chapter 20.” While it is not an actual part of the US Bankruptcy Code, “Chapter 20” may be an option you and your family should consider if you are facing unsustainable amounts of debt.

If you or someone you love is facing long-term financial hardships and is wondering if there is a way out, the Birmingham bankruptcy attorneys of [firm-name] may be able to help. We would like to discuss your potential bankruptcy case with you. Contact us today by calling [phone-number] for more information.

Understanding “Chapter 20”

“Chapter 20” bankruptcy is actually a combination of a Chapter 13 bankruptcy filing followed by a Chapter 7 filing – hence the name. A “Chapter 20” filing has a number of benefits over other types of filings, including:

  • Protecting your home from foreclosure while allowing you to pay off debts
  • Providing multiple layers of debt protection

Despite their benefits, “Chapter 20” bankruptcies are not without their disadvantages, such as:

  • Some judges and some jurisdictions do not like granting them
  • You cannot file for one if you have filed for bankruptcy within the last two years

An experienced bankruptcy attorney can help you determine if a “Chapter 20” filing is beneficial for your situation.

Contact Us

If you are dealing with the burden of large debts and you don’t know what your options are, the Birmingham bankruptcy attorneys of [firm-name] may be able to help. Contact us today by calling [phone-number] to discuss your financial options.

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