In a 2015 bankruptcy case reviewed by the Bankruptcy Appellate Panel for the Ninth Circuit, debtors can strip off a wholly unsecured junior lien from their home even though they are not entitled to a discharge under Chapter 13 Bankruptcy. Boukatch v. MidFirst Bank (In re Boukatch), 533 B.R. 292. Debtors in the case filed for Chapter 13 Bankruptcy within the 4 years of filing a Chapter 7 Bankruptcy which they received a discharge. This was a "Chapter 20 Bankruptcy case" because they filed a Chapter 13 Bankruptcy after a Chapter 7 Bankruptcy (hence, 13 + 7 equals 20).
There are cases were it can be beneficial to file for Chapter 13 Bankruptcy even though you are ineligible to receive a discharge. For example, you are trying to prevent a foreclosure or IRS tax debt levy or wage garnishment by providing for a payment plan to pay off the arrears.
For more information, call Muoi Chea, experienced Sacramento Bankruptcy Attorney servicing Sacramento, Stockton and Fairfield, California and surrounding cities throughout Northern and Central California like Tracy, Modesto, Roseville, Rocklin, Vacaville, Vallejo, Elk Grove, Citrus Heights, Yuba, Woodland, and Davis.