How can I get a chapter 13 hardship discharge?

Generally, if a Chapter 13 debtor is unable to complete his Chapter 13 plan, his case will be dismissed.  However, there are instances when a Chapter 13 debtor who is unable to complete his Chapter 13 plan may be eligible for a hardship discharge. 

What constitutes a hardship varies from jurisdiction to jurisdiction, but generally a debtor must prove that: 

• He has suffered a catastrophic personal injury or illness which prevents him from working; or
• He is unable to work for reasons that are beyond his control. 

If a Chapter 13 debtor successfully proves either of the above elements, he must also prove that: 

• His general unsecured creditors have received at least as much as they would have received in a Chapter 7 case; and
• Modification of his Chapter 13 plan is not feasible. 

A Chapter 13 hardship discharge is more limited than the discharge a debtor receives upon successful completion of his Chapter 13 plan.  Debts that are no dischargeable in a Chapter 7 bankruptcy case will not be discharged if a Chapter 13 hardship discharge is granted including: 

• Certain tax obligations;
• Family support obligations;
• Student loans; and
• Certain long term obligations, such as mortgage and auto loans. 

Obtaining a hardship discharge is not simple and requires the knowledge and expertise of a bankruptcy attorney.  A bankruptcy attorney will file the Motion for Hardship Discharge, ensure that it is properly served on the Chapter 13 trustee and your creditors, and will appear at the hearing and argue the motion on your behalf.