Bankruptcy Chapter 6.5 is a term of my creation and it references a situation where a homeowner files Chapter 13 bankruptcy to save their home through a mediated loan modification, but then dismisses the bankruptcy once the modification is completed - thus completing half of a Chapter 13 reorganization (13 divided by 2 equals 6.5).

Recently, I posted a blog article and related podcast that asked the question "Why is Bankruptcy so Odd?" In that article, I never discussed Chapter 6.5. You won't find Chapter 6.5 in any bankruptcy law book, code book, or rule book. You won't even find it amongst any slang around the courthouse (unless, of course, this podcast episode and its related blog go viral).

Today's episode covers when this might be a good strategy for someone in bankruptcy or foreclosure, and also covers why this strategy exists in the first place - it has to do mostly with the way payments are accepted and applied by the Chapter 13 Trustees here in Tampa, Florida.

We hope you enjoy this episode. If you have any questions, or if you have topics that you think would make a great future topic, please contact me at by email at [email protected], or visit the Yesner Law website.