What Is chapter 20 bankruptcy?
Posted on Monday, January 20th, 2014 at 11:19 pm
In some cases, simply filing a one-time Chapter 7 or Chapter 13 bankruptcy cannot completely solve your financial problems. For example, if you have a great deal of both unsecured debt (such as credit card debt) and secured debt (such as a mortgage or a car loan), you may benefit from a Chapter 20 strategy. While there is no official “Chapter 20,” this concept involves first filing a Chapter 7 to eliminate your unsecured debt, and afterwards pursuing a Chapter 13 in order to lengthen the amount of time you have to pay off secured debt. Using this method allows you to return to a positive cash flow so you can protect assets such as your home and your car. While Chapter 20 has helped a lot of people secure a better financial future, it is not right for everyone. Your best move is to contact our firm for a free initial consultation where we can discuss the specifics of your unique circumstances. Regardless of your position, our firm can help you find the best debt reduction strategy for your needs.
