What Is Chapter 20 Bankruptcy?
When a person has a significant amount of debt that won’t qualify in Chapter 7 bankruptcy to be discharged, they may want to consider filing for Chapter 13 bankruptcy immediately after Chapter 7 bankruptcy, as these two different types of bankruptcy allow for different financial benefits. This debt-reduction strategy is commonly known as Chapter 20 bankruptcy and can provide a debtor with many benefits.
If you’re facing particularly troublesome debt in a bankruptcy proceeding, it may take special tactics and strategies to get this debt reduced or to set up an effective repayment plan to completely manage your debt. For more information about how an experienced bankruptcy lawyer may be able to help you address all of your debt, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, today at (239) 237-0675.
What Are the Benefits of Chapter 20 Bankruptcy?
Although there are certain limitations to how often a debtor can file for certain bankruptcies, a debtor may have the ability to file Chapter 13 bankruptcy directly after completing Chapter 7 proceedings. However, they won’t receive a second discharge. There are still some very powerful benefits, though. These benefits include the following:
- Getting additional time to work through arrears, such as backed-up mortgage payments
- Being able to work through non-dischargeable debts faster
- Paying off debts related to tax responsibilities faster
Although there’s no discharge at the end of the Chapter 13 proceedings in a Chapter 20 strategy, the process of having debts discharged with a Chapter 7 filing and working through paying off the rest through a repayment plan can have a profound impact on erasing a person’s debt obligations.
Although bankruptcy strategies can at first seem confusing, a legal advisor may be able to help you find a solution to your debt problems that lasts. For a free consultation regarding your options for utilizing bankruptcy, contact a Florida bankruptcy lawyer of Ryan J. Really, Attorney at Law, PLLC, today by calling (239) 237-0675.