My Ch 7 bankruptcy was discharged in March 2002. Since then I have managed to rebuild my credit and now have four credit cards and a car loan through Ford. In April 2003, I started having medical problems which resulted in surgery and a 3 month medical leave beginning in September 2003. Although I was on disability during my medical leave, I ran up medical bills and was forced to live off my credit cards to make ends meet. Right now my medical bills and credit card debt total over $15K plus I have a car loan for $11K and a tax bill from 2001 for $500. My salary is $25K. I've attempted to work out payment plans with Capital One, Target Visa and the surgeon's office, but no go. I talked to CCCS, but their payments were too high. Capital One is about to chargeoff and Target Visa is heading in the same direction. I've managed to keep up the payments on the other two credit cards. A friend suggested filing a ch 13 bankruptcy to reorganize my debts so the payments would be smaller and the interest rate reduced. I thought I couldn't file another bankruptcy until my ch 7 bankruptcy was 10 years old. He called it a Chapter 20 bankruptcy, but I've never heard of that before. Normally I would check with my bk lawyer, but I filed pro se because I couldn't afford a lawyer. Any advice or suggestions would be appreciated.
There is no "official" CH 20 in the US BK Code This is sort of a shorthand name for those who file a 7 and a 13 right after one another (7+13=20) It usually goes the other way...a person files a CH 13, it gets dismissed or discharged, then they immediately file a CH 7. You can file the CH 13 if you really need to, but you can't file another CH 7 BK for 6 years good luck
I did this. Unofficially, it is referred to as Chap 20. But you file your chap 7 first. The idea is to first get rid of all those things you can get rid of. Then those things you still have to pay on, you file a 13 when your 7 is discharged. Jane
Jane is right on point about a "Chapter 20" in that it is most effective to file a 13 first to protect any large assets such as a home or car and upon completion of a 13 to file a 7 to discharge any remaining "unsecured" debt. You are not precluded from filing a Chapter 13 right now but I wouldn't advise doing it pro-se. Only 33% of people filing 13's complete the plan successfully. If you default on a 13 you will not be able to file a 7 until 6 years from your 7 filing. So basically if you default in a 13 you're screwed. That is why a "20" is so effective when you do a 13 first as a 13 can be converted to a 7 but a 7 can never be converted to a 13. clc
actually a 7 can be converted...if you reaffirm your house and autos (for example) and discharge your other debt, you can file on the house and autos for lower payments. i would continue to try to work out payment plans...the amount you owe is not outrageous. your auto loan may be willing to work with you too.
Ya'll got it all arse backards (twang)... In a chapter 20, you file a 7 to discharge your unsecured debt, then reaffirm your house and your vehicles. Then you file a 13 to get on a payment plan for the stuff you reaffirmed.
dixie, you're exactly right...the order is a 7 first then a 13. The short answer to the OP is "yes" she can file a 13. Her big advantage here could not only be paying a reduced amount on her unsecured credit card debt but she could also "cram down" (lien strip) her car loan. My main advice to her is do not file a 13 pro-se. It is not as straight forward as a 7 and most pro-se filers don't have a clue as to drafting and presenting a plan. clc
Re: Re: Can you file Ch 13 after a NO, NO, I got it right. First you do a chap 7 to get rid of all things you can and those you cannot, you file 13. Why would someone bring to a 13 all those debts which can be discharged through chap 7. ? In chap 13, you are required to pay back a very large portion of your debts. So the idea is to bring to a chap 13 as little debt as you possibly can. Because the BK Court will be very strict about how much you do pay your creditors. Jane
