A Chapter 20 Bankruptcy is the completion and discharge received from a Chapter 7 followed by the filing of a Chapter 13 Bankruptcy. Hence, Chapter 7 + Chapter 13 equals Chapter 20 Bankruptcy. If a Chapter 13 Bankruptcy if filed within 4 years of the date of filing Chapter 7 Bankruptcy, you cannot receive a discharge from the Chapter 13 Bankruptcy.
Nonetheless, there are benefits for filing a Chapter 13 Bankruptcy even without the discharge. You need to force your secured lenders into a 5 year payment plan to catch up on arrears in order to stop foreclosure and repossession. You need to first file a Chapter 7 Bankruptcy because the amount of your debt is in excess of the limits set by Chapter 13 Bankruptcy. You want to lien strip your second mortgage from your home in the Chapter 13 Bankruptcy so the loan becomes an unsecured debt. Even though you do not have the Chapter 13 Bankruptcy discharge, if the second mortgage was discharged in your prior Chapter 7 Bankruptcy, the mortgage lender cannot attempt to collect from you unless you signed a reaffirmation agreement or entered into a completely new contract after Chapter 7 discharge.
For more information about Chapter 20 Bankruptcy, call Muoi Chea, bankruptcy attorney with offices in Sacramento, Stockton, and Fairfield, CA to serve nearby cities like Tracy, Roseville, Elk Grove, Davis, Yuba, Modesto, Vallejo, and Benicia, CA.