Chapter 13 Hardship Discharge

my question is if you have been in a charpter 13 for little over 21/2 yrs. could i ask for a discharged but still pay my plan payments. so with the dischared my credit score a go up.

Hi charm!

Welcome to forums!

It is quite surprising to me that 2 and 1/2 years have passed and still your bankruptcy is not discharged. I guess, you need to speak to your bankruptcy attorney regarding the issues. As far as the payments are concerned, once your bankruptcy is discharged, you would be able to pay the dues according to the new plan given by the lender.

Feel free to ask if you have further queries.

Sussane

Hi, I am at my wit's end. I am 3 years into my repayment plan and since the economy has changed radically, I am struggling to make my mortgage payments, and, in fact, am two payments behind. My lender raised my interest rate immediately after my bankruptcy case was discharged and then continued to raise it. Can the trustee intervene and ask my mortgage lender to lower the interest rate? I am employed but my salary is beyond thinly stretched at this point.

Hi Kaye!

Welcome to forums!

I don't think the bankruptcy trustee can intervene and negotiate with your lender. In my opinion, you'll have to inform the lender about your hardship and negotiate with him so that he reduces your interest rate.

Feel free to ask if you've further queries.

Sussane

Hi Sussane! Thanks for the quick answer. I thought I had read somewhere that the part of the President's economic reform was to alleviate the hardship caused by the credit fiasco and force lenders to be more reasonable with interest rates. I'm probably off on that though!

I have had a lot of life hardships like my car is seriously falling apart at 9 years old, need major house items fixed, dental surgery, etc. All came to a head at the same time... It seems like the hardship is related to losing your job or catastrophic illness. Is that the "test" - job or health - for a hardship discharge?

Hi Kaye,

Job loss can be considered as a criteria for hardship discharge. I think you should contact your bankruptcy attorney and discuss with him whether you can get a hardship discharge or not.

i have been in a chapter 13 bankruptcy since march 2006. i didnot place my home under bankruptcy when i filed. i am having hardhip secondary to being a mother of a college student, my car broke down, and i had a decrease in salary. i have paid all my secured debts that were listed in my bankruptcy case. i am now paying the 1% on unsecured credit car debts. will i qualify for a hardship discharge?

Hi Ella,

It is not easy to get a hardship discharge. In order to get a hardship discharge from your bankruptcy, you will have to prove that you have suffered a massive personal injury or you are unable to work for reasons which you cannot control. If you can prove so, you may get a hardship discharge. Speak to your bankruptcy attorney regarding this and check out his opinion in this case.

I had filed chapter 13 due to my husband not working much last 14 months i was only able to affor my mortgage and eectric and heat bills and food. I could not pay the chapter 13 payment can i request help in lowering my payments .

Hi Guest,

You should immediately contact your bankruptcy trustee and attorney and take their opinion in this regard. You may apply for lowering your payments. You should take immediate steps or your bankruptcy may get dismissed.

Thanks

I was unaware that I could not borrow or take out small loan while on Chaper 13. Payments made each month leave us living hand to mouth, I recieved a check in the mail by a small finance company and cashed it and was making payments until I my medicines increased and I could not longer make the required payment on the small loan..now they just sent a letter to me and to my lawyer (who is of no help) along to the trustee asking to dismiss our bankruptcy...what does that entail?

Hi Sabrina,

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/bankruptcy/chapter13-borrowmoney.html

Take a look at it. Hope it helps you.

Thanks.

In august of 2009, i lost my job due to company closure. In sep, 2009 i asked for a chapter 13 payoff because i had a little money from my 401k. I continued to pay my payments to chapter13, plus all my other bills on time till way into march of 2010. At that time my fund started to run out and still hadn't received a payoff. I still continued to pay as much as i could when i could. Now on June1, 2010, i received a letter from chapter 13 that i owe almost $3000 by june 10, or there would be a dismissal. My lawyer says all I can do is pay the money which i do not have. Now i read your column and see that maybe i could have gotten a hardship discarge, which my lawyer never mentioned. Is it too late to ask for this? Thanks, Lori

hi lori,

you should note that hardship discharges are very limited in case of chapter 13 and unless you satisfy the required criteria of the bankruptcy court, you won't be able to qualify for it. hardship discharges are mainly given due to injury or illness which affects the employment and makes it impossible for the person filing bankruptcy to pay the dues.

thanks