What is Chapter 20 Bankruptcy?
When people think about bankruptcy, they usually think of Chapter 7 or 13. Many people don't know that there is a Chapter 20 bankruptcy as well. Or Los Angeles bankruptcy team explains what Chapter 20 bankruptcy is and when it might be appropriate to file for it. We will also discuss how our team at Resnik Hayes Moradi LLP can help you decide on whether or not to file for bankruptcy.
What Exactly is Chapter 20 Bankruptcy?
Chapter 20 bankruptcy is actually a combination of Chapter 13 and Chapter 7 bankruptcies, 7 + 13 = 20. First, the debtor will file for Chapter 7 bankruptcy and receive a discharge of their unsecured debts. Then, the debtor will file for Chapter 13 bankruptcy and propose a repayment plan to creditors. This advantage is that the debtor can get rid of some of their debt while maintaining control over their assets.
Benefits of Filing Chapter 20 Bankruptcy
There are a few benefits to filing for Chapter 20 bankruptcy:
- Get rid of most, if not all, of your debt.
- Ability to can keep their assets.
- Set up a repayment plan that works for you and the creditors.
Filing for bankruptcy is a big decision and one that should not be taken lightly. It is highly recommended to seek the legal guidance of a skilled bankruptcy attorney.
Have Resnik Hayes Moradi LLP On Your Side
The bottom line is that Chapter 20 bankruptcy can be a good option for people who want to get rid of some debt but still maintain control over their assets. If you are considering filing for bankruptcy, contact Resnik Hayes Moradi LLP to schedule a consultation with one of our experienced attorneys. We can help you understand your options and make sure you make the best decision for your financial future.
Get in touch with us today and schedule your free consultation.