Filing Chapter 13 Bankruptcy After a Chapter 7 Discharge

[jeremy24175]

Ok, my attorney isn't strictly a bankruptcy attorney and I have a question whether this is possible.

The attorney suggested we file a chapter 7 and after the discharge to file a chapter 13.

Since the chapter 7 won't discharge prior to October 17th is this possible?

The has talked to other attorneys who practice in our area and they said they've filed '20's' in the past but will it be possible to file the 13 so soon after discharge under the new law?

Thanks for all your help!

[aaron]

The availability of the so-called "Chapter 20" bankruptcy (Chapter 7 followed by Chapter 13) varies by district; whether or not it will remain possible in your district is something best asked of the court or a local bankruptcy lawyer.

The larger issue would appear to be if the new bankruptcy law would force you into Chapter 13, as many people will be rendered ineligible for a Chapter 7 discharge by the new law.

[jeremy24175]

I can't give names (I don't know whether it's allowed or not) but the attorney talked to a trustee and they said that it'll be fine in the Northern Ohio district.

One last question. If the seven is discharged does that mean they'll reinstate the debt that I'd previously filed from the seven and put it back under the 13?

[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. Some jurisdictions do not allow debtors to pursue this option. In jurisdictions that allow "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.

[dgaret]

I live in Ohio and I had filed Chapter 7 BK in August and I had the same question to my attorney about filing a chapter 20. Chapter 7 and then chapter 13 to save my home. He was checking into it since the new laws are going into effect in October but, I am glad your attorney said it would be possible. Also, in regards to your question my understanding is at least from my attorney and people in the past that have done this once you receive a discharge under chapter 7 your debt is not reinstated.