Simple English definitions for legal terms
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Chapter 20: A term used to describe a situation where someone who owes a lot of money files for bankruptcy and gets rid of some of their debts, but still has some left over. They then file for bankruptcy again to deal with the remaining debts that they couldn't get rid of the first time.
Definition: Chapter 20 is a slang term used to describe a situation where a person files for bankruptcy under Chapter 7 and receives a discharge, but then immediately files for bankruptcy again under Chapter 13 to deal with remaining debts that cannot be discharged.
Example: John filed for Chapter 7 bankruptcy and received a discharge, but he still had a large amount of debt that was not dischargeable, such as student loans and taxes. He then filed for Chapter 13 bankruptcy to create a repayment plan for these debts.
Explanation: In this example, John's situation illustrates the definition of Chapter 20. He first filed for Chapter 7 bankruptcy to discharge as much debt as possible, but then filed for Chapter 13 bankruptcy to deal with the remaining debts that could not be discharged. This is a common strategy used by individuals who have a combination of dischargeable and nondischargeable debts.