A Chapter "20" bankruptcy refers to the situation where a Chapter 7 case is filed followed by a Chapter 13 case. We generally use this strategy for Clients who would like to strip off or cram down a junior mortgage lien or tax lien but can not start off with a Chapter 13 because they exceed the debt limits and they can not afford the substantial cost of a Chapter 11 case. We are fortunate that the Bankruptcy Courts in both the Eastern and Northern Districts of Calfiornia allow "lien stripping" in 13 cases which are ineligible for discharge because of a prior Chapter 7 case.

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