Getting a Chapter 13 Hardship Discharge

Have you declared Chapter 13 bankruptcy, structured a reorganization plan, and found that you have been unable to make the obligatory payments as laid out in your plan? If so, you may be able to request a Chapter 13 hardship discharge, which will release you from your debts.

Obtaining approval for a hardship discharge is no easy feat, however. The court will need to make sure you’ve met the qualifications and that your creditors have received as much repayment as they would if you had filed for Chapter 7 bankruptcy. Read on to learn more about how you can be approved for a Chapter 13 hardship discharge.

Qualifying for a Hardship Discharge

Before your request for a hardship discharge will even be considered, you’ll need to meet eligibility requirements. Simply missing payments due to forgetfulness or irresponsible spending isn’t a good enough reason to qualify for a hardship discharge.

You must have been unable to meet the repayment terms through no fault of your own. This might be because you became permanently disabled and unable to find gainful employment, for instance. If this is the case, you should be prepared to provide medical documentation of your debilitating condition.

You will also need to demonstrate that renegotiating the terms of your reorganization plan simply isn’t a feasible option. It will be critical to prove that under no circumstances are you going to be able to continue to repay your debts. If these requirements have been met, you may be able to get a Chapter 13 hardship discharge.

Debts That Will Not Be Discharged

It is important to note that just because you are approved for a hardship discharge doesn’t mean that every single debt you’ve incurred will be discharged. Some of the types of debts that may not be discharged include the following:

  • Alimony payments
  • Child support debts
  • Taxes owed
  • Student loans
  • Civil lawsuit judgments
  • Restitution for criminal convictions
  • Any debts that weren’t listed in your disclosure statement

If you are unsure whether a debt will or should be discharged when you’re approved for a hardship discharge, discuss the details with an experienced attorney.

Reach Out to a Terre Haute Bankruptcy Lawyer

If you have been unable to stick to the repayment terms of your reorganization plan through no fault of your own and need assistance from an experienced Chapter 13 bankruptcy lawyer, contact Rowdy G. Williams Law Firm today.

You can schedule your no-obligation case review by completing the contact form below or giving our office a call at 1-812-232-7400.