Because of the current economic situation, more and more people are finding themselves facing bankruptcy. The sheer number of options presented to people filing for bankruptcy can be overwhelming. Each of the major chapters in the United States bankruptcy code – Chapter 7, Chapter 9, Chapter 11, Chapter 12, and Chapter 13 – offer different protections and options to different people and businesses. There is one more chapter that is frequently talked about: Chapter 20. But Chapter 20 is not an established bankruptcy chapter; it is actually a combination of Chapter 7 and Chapter 13.
What Is Chapter 20?
Chapter 20 bankruptcy is actually a combination of Chapter 13 and Chapter 7 bankruptcies, filed in order. The Chapter 7 filing serves to help you pay off unsecured debts, while the Chapter 13 bankruptcy filing allows you to begin paying off mortgage payments with the breathing room supplied by the Chapter 7 filing.
Under current US law, Chapter 13 bankruptcy can only be filed once every two years. This limits the frequency with which you can undergo “Chapter 20” bankruptcy.
If you or someone you love is having financial trouble and is considering filing for bankruptcy, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC may be able to help. Contact us today by calling 414-377-0518.