Chapter 20 Bankruptcy?

   Yes, but you won’t find it in the code. Not all bankruptcy judges will allow it, and certainly not in all circumstances. It refers to the situation where a debtor is ineligible to file a Chapter 13 due to the nature and amount of debt or a chapter 20 is simply determined to be the debtor’s best course of action. The debtor therefore files a Chapter 7 to discharge his unsecured dischargeable debt. After the discharge is granted, the debtor files a Chapter 13 to reorganize remaining debt obligations. Hence the name: 7 + 13 = 20. Continue reading