The following types of bankruptcy help many debtors find relief from overwhelming debt:
- Chapter 7, in which consumer debts are discharged altogether
- Chapter 13, involving restructuring a repayment plan usually lasting three to five years
- Chapter 11, usually used by large businesses
Another type of bankruptcy solution that many debtors find useful is known as a "Chapter 20" bankruptcy. A Chapter 20 bankruptcy does not appear under that label in statutes. Rather, it is a way of describing a combination of a Chapter 7 followed by a Chapter 13 bankruptcy or a Chapter 13 followed by a Chapter 7.
Chapter 20 bankruptcy has become a favorable solution for many property owners whose homes have lost value in the recently declining housing market. Filing a Chapter 7 first and then filing a Chapter 13 bankruptcy may be advisable for debtors who need to eliminate unsecured debt through Chapter 7 and also resolve secured debt problems such as mortgages in trouble through a Chapter 13 bankruptcy.
Normally, there are significant timeline limitations for filing repeat bankruptcies:
- Eight years between successive Chapter 7 bankruptcies
- Six years between a Chapter 13 and a Chapter 7
- Four years between a Chapter 7 and a Chapter 13
- Two years between successive Chapter 13 bankruptcies
However, in certain cases, P.R. Smith Law Group P.A. can help a homeowner return to bankruptcy court, petitioning to allow our clients to take advantage of other provisions of the Bankruptcy Code. When bankruptcy judges agree, this is a way to strip a second mortgage. A homeowner eliminates unsecured debt by filing Chapter 7 and then files Chapter 13 shortly thereafter to restructure remaining debt and eliminate any home equity line of credit, second mortgage or third mortgage. A detailed review of your situation will help determine whether this solution is a viable option in your case.
Florida Chapter 7 and 13 Lawyer: Free Initial Consultation
If you desire more information on the bankruptcy process as it is likely to apply to your unique circumstances in a Florida community such as Tampa, Brandon, Lakeland or New Port Richey, bankruptcy attorneys of the P.R. Smith Law Group welcome your inquiry. Contact us by e-mail or call one of our Florida offices toll free at 888-682-5251 to schedule a free consultation with an experienced Tampa Chapter 20 attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
