Massachusetts Bankruptcy – What is a Chapter 20 bankruptcy?

June 21, 2010

By Bankruptcy Attorney Kara O’Donnell
“Chapter 20”

A “Chapter 20” bankruptcy occurs when a Chapter 7 bankruptcy is filed to discharge unsecured debts then a Chapter 13 bankruptcy is filed. This is often done to allow the debtor to catch up on mortgage payments.

If you file a Chapter 7 and get a discharge, three years must pass before a Chapter 13 filing. Whereas if you filed for 13 previously, you must wait 2 years before filing another 13 petition.

However, if you are in the process of a Chapter 7 bankruptcy, you may CONVERT your 7 to a Chapter 13. However, the Supreme Court has held that the right to convert is NOT absolute and may be denied for bad faith. (Marrama v. Citizens Bank of MA)

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