Chapter 20 Bankruptcy

[wisdom_seeker]

I am in the State of Michigan and cannot afford an attorney. Could you tell me if a 13 & 7 need to be consecutively or can they both be filled at the same time?

Thank you!

[aaron]

As is explained in this overview of bankruptcy law,

A so-called "Chapter 20" bankruptcy is the process filing of a "Chapter 7" bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments. The 2005 Bankruptcy Reform Act attempts to limit "Chapter 20" bankruptcies by imposing limits on the filing of successive bankruptcies. Under current bankrupcy law a Chapter 13 bankruptcy may be filed only once every two years, and three years must pass after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Some debtors attempt to circumvent this restriction by filing for Chapter 13 protection while the Chapter 7 petition is still pending. That option is not available in all courts. In a "Chapter 20" bankruptcy, debtors should be aware that missing even one mortgage payment after filing the initial "Chapter 7" petition may cost them their ability to save their home in a subsequent "Chapter 13" filing.

[wisdom_seeker]

Thank you.

My question is really concerning a statement I read in the U S Courts Chapter 13 bankruptcy article. It states under The Chapter 13 Discharge: a Chapter 13 discharge can be obtained if the debtor " ... (2) has not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 cases and four years for prior chapter 7, 11 and 12 cases)"

I believe my Chapter 13 will be a 3 year repayment plan. I do not qualify for the 5 year repayment plan.

Doesn't that mean the 13 must be filed or discharged last?

I had a bankrutcy attorney tell me the 7 & 13 could be filed at the same time.

This is a Michigan case.

[Mr. Knowitall]

What makes you think somebody here is going to know the accepted practice in whichever Michigan bankruptcy court your filing in - there's more than one, you know - as compared to your own lawyer?

[wisdom_seeker]

I don't have a lawyer. I just spoke with one once. Since I have no money to pay him, I don't feel that I should bother him.

Was I wrong to think this forum is to ask these kind of questions?

If it was a wrong assumption I apologize.

[Mr. Knowitall]

We're not psychics. You were already told that this option is not available everywhere. We don't know where you are (which specific bankruptcy court), whereas your lawyer does, and you haven't told us. So we can't give you a better answer than you got from your lawyer.

[wisdom_seeker]

I am in the Western District of Michigan

[wisdom_seeker]

I did contact the attorney. He was so nice to take my call. He knows I cannot afford to pay him. He said I could file them in my district.

Thank you for your help.

[Mr. Knowitall]

That's helpful information. I suggest acting soon, though, as I keep coming across cases where that particular option has been ended by various federal appellate courts. It may be just a matter of time before the Sixth Circuit does the same thing.