In certain circumstances you can benefit by filing for Chapter 13 after a Chapter 7 filing. Commonly, known as ‘Chapter 20’ bankruptcy, you will be able to first discharge debt and then develop a repayment plan for the remainder.
Unofficially titled, Chapter 20 bankruptcy is a complex approach to debt relief. Qualifying homeowners who want to stay in their home may file for Chapter 13 Bankruptcy after the completion of their Chapter 7 bankruptcy. In some cases, the bankruptcies can run concurrently. In-depth knowledge of bankruptcy law is essential for this strategy.
It is necessary that you have agreed to regular mortgage payments under the terms of the Chapter 7 bankruptcy. Signing a reaffirmation agreement or redeeming the property would negate the benefits of Chapter 20. But after the discharge of unsecured debt, a Chapter 13 can then be filed in order to redeem the property with installments.
Our attorneys can guide you through the process as follows: