Chapter 13 Hardship Discharge

Guest 0.10 Dollars($)

after my chapter 13 bankruptcy plan has started and I am not able to continue then how can I get a hardship discharge and when the court will allow it.

blue · Posted: Thu Apr 12, 2007 4:11 pm Post subject:

Hi Manilow,

Welcome to Mortgagefit discussion board.

After your Chapter 13 bankruptcy plan has started some circumstances can arise which results in you unable to continue making payments as per the plan.

If such situation arises you can ask the court to grant you hardship discharge. But court will consider such a request if:

Your creditors have been paid at least an amount which is equal to what they may have received in a Chapter 7 liquidation plan.

It is not possible to have a modification of the plan and

Your failure to complete payments as per the chapter 13 plan are due to circumstances over which you do not have any control and such circumstances have not arisen because of your own fault.

Do let me know if you have any other questions.

Thanks
Blue

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Additionally to the points Blue mentioned, any illness or injury which stops you from getting a job by which funds would be available to continue a new modified payment plan can be the basis for getting a hardship discharge.

Also, hardship discharge will not apply to such debts which are nondischargeable in a Chapter 7 bankruptcy case.

Miller

SHARLEE2004 · Posted: Thu Apr 12, 2007 6:00 pm Post subject: 13 discharge

If you are a homeowner, you may be able to pay off that Chap.13 by refinancing your home and consolidating mortgage and the balance of the Chap. 13.

Depending on the balance you may save your credit and money at the same time.

Caron

Hi Manilow,

Generally chapter 13 discharge releases a debtor from all debts mentioned in the repayment plan excepting those which are not allowed to be discharged under the plan. These debts include taxes including those for which you haven't filed the returns, debts incurred by fraud, student loans, criminal fines, debts from injury and certain home loans.

However, in your situation, if you are not able to follow the plan entirely, you may talk to the creditor and possibly if he is willing to help you out, he may modify the plan. This will be done off course with court approval.

Now, if you think you will not be bale to make any more payment, then requesting for a hardship discharge is the only way out. You need to collect the paperwork that you may have and which will help you to prove that you have gone through financial crisis for which you aren't responsible. You may even submit any medical proof of any injury due to which you will not be able to pursue your job and hence you will be unable to pay off the debts under the chapter 13 payment plan.

All you need is to speak out about your situation and show the proofs if any.

Good luck Smile

Guest 0.10 Dollars($)

I have an illness that may cause me to be unable to work. Can I ask for a hardship discharge? I now owe less than $3,000.00 right now. But i do not have any money to pay that.

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Welcome Dee.

Is it a secured debt or unsecured debt? You should send a hardship letter mentioning the problems that you face and cause you for the non-payment. It also needs to be mentioned how you are going to pay.

Guest 0.10 Dollars($)

how do you determine what the amount would be recieved by the people owed if you had to ask for a hardship discharge. I know you said that the balance of the debts owed has to have been paid down to what they would have got if you had filed ch 7, but how do you determine what that amount would be for chapter 7. And do you still have to finish paying back taxes if an hardship is allowed? Also does heart problems resulting in disability count as hardship. thanks

sara · Posted: Wed Aug 27, 2008 3:57 am Post subject: RE:

Hi Tina,

Welcome to the forums.

Are you thinking of filing chapter7 bankruptcy? first of all, you will have to go through a means test and find out i you qualify for chapter7 or chapter 13. Then the trustee will guide you on how to move ahead with the bankruptcy including the amount you have to pay while in bankruptcy. I guess only a bankruptcy attorney can guide you on the filing procedure.

I haven't heard of a hardship discharge under chapter 7. I suggest that you check out the state laws or ask your attorney about it. Usually hardship discharge occurs under Chapter 13 when the person filing the Chapter can't follow the payment plan.

Take care

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