What is a Chapter 20 Bankruptcy?

Our Las Vegas Bankruptcy Lawyer Explains

Chapter 20 bankruptcy?  Never heard of it?  Chapter 20 isn’t one of the chapters of bankruptcy in the bankruptcy code.  This is a great piece of information to consider if you have recently filed a Chapter 7 bankruptcy in Las Vegas. A chapter 20 bankruptcy may help if you are unexpectedly facing a debt crisis.

What is a Chapter 20 Bankruptcy?

You can only file a Chapter 7 Bankruptcy every eight years- here’s how Chapter 20 can help.

Imagine filing for a Chapter 7 bankruptcy and then having an unexpected emergency.  An emergency that results in thousands of dollars of debt.  Most people are under the assumption that if they filed a Chapter 7 bankruptcy less than eight years ago they do not have the option of filing bankruptcy again.  It is true that you cannot file another Chapter 7 yet.  There is the option of receiving a discharge under a Chapter 13 bankruptcy if it has been at least 3 years since the filing of a Chapter 7.  This is commonly known as a “Chapter 20” bankruptcy.

This is a beneficial option for some people in financial trouble. Once your Chapter 20 is filed, you will be protected by the Automatic Stay again as you were in your first Chapter 7 Bankruptcy. Foreclosures, repossessions, and garnishments will be stopped until your case is completed.

If you have previously filed a Chapter 13 Bankruptcy, you will have to wait 2 years until you file another Chapter 13, or 6 years until you file a Chapter 7.

Even if it has been more than 8 years since your Chapter 7, Chapter 20 may be a more beneficial option for you.

A “Chapter 20” can also be a strategic financial plan.  For example, if someone has $20,000 in unsecured debt, and is also behind on their mortgage, or has priority debt such as taxes that a Chapter 7 will not discharge, it may be in the debtor’s best interest to file a Chapter 7 to discharge the unsecured debt and immediately file a Chapter 13 to structure a payment plan for the non-dischargeable debt

There are still filing restrictions when using Chapter 20 Bankruptcy.

A bankruptcy discharge will not be granted in a Nevada Chapter 13 if it is filed less than 3 years after the filing of the Chapter 7 bankruptcy in Las Vegas.  The chapter 13 will provide an affordable repayment plan on the remaining debt. The chapter 13 bankruptcy plan is calculated by averaging your income over the past six months and allowing you enough spare income for reasonable expenses. The Bankruptcy Trustee has to approve your payment plan, and will not do so if you can’t realistically afford the payment plan you and your attorney propose.  The assistance of a seasoned debt relief attorney would come in handy to better assure you can qualify for your payment plan.

You may be able to change your case back to a Chapter 7 during a Chapter 20 Bankruptcy.

If your income qualifies you for a Chapter 7 but need to file a Chapter 20 due to time restrictions, you may eventually be able to convert back to a Chapter 7 during your payment plan. For example, if it has been 6 years since you filed Chapter 7, and you file a Chapter 13 payment plan, you may be able to convert your case to a Chapter 7 two years into your payment plan. Once you successfully convert your case, the payment plan will stop and your debts will be discharged. However, if you are utilizing a Chapter 13 plan to catch up on vehicle and home payments, you will need to complete your payment plan to avoid repossession and foreclosure.

The first step is scheduling your initial consultation.

If you would like more information to see if a “Chapter 20” would benefit you, please call our experienced bankruptcy attorneys at My Las Vegas Lawyers, (702) 879-9262.  Find out if a Chapter 20 bankruptcy is something you qualify for, and learn about how bankruptcy will affect your personal financial situation.  Our bankruptcy lawyer Erik Severino has 13 years of bankruptcy experience and has filed thousands of successful Clark County, Nevada bankruptcies.

The Law Office of Erik Severino
Vegas Bankruptcy Lawyers
7251 W Lake Mead Blvd
Las Vegas, NV 89128
Phone : (702) 879-9262
Email: [email protected]
Website: https://lasvegasbankruptcylawyer.co/