How do I determine my eligibility for a Chapter 13 Bankruptcy Hardship Discharge?

A hardship discharge is granted to debtors who can’t complete or finish their chapter13 repayment plans. Generally, a hardship discharge is the last resort when the U.S. Bankruptcy Court won’t allow debtors to modify the repayment plan or convert the plan into a chapter 7. The discharge is also possible when debtors aren’t interested in dismissing their chapter 13 bankruptcy cases.

To determine eligibility requirements for a chapter 13 bankruptcy hardship discharge, debtors should meet the following requirements. For instance, the reason for the hardship discharge is because of an unexpected circumstance such as a job lay off or medical injury that prevents them from working. These circumstances can’t be the fault of debtors. For example, debtors can’t quit their job and expect a hardship discharge. Another eligibility requirement involves creditors. The creditors listed in the repayment plan must receive the amount of money they would have received in a chapter 7 liquidation case. Also, a chapter 13 modification must impossible. A modification is when chapter 13 payments are suspended for a number of months to allow debtors to get back on their feet financially while they keep their future payments current.

Hardship eligibility requirements are extremely complicated. Thus, the best way to determine eligibility for a chapter 13 hardship discharge is to consult a bankruptcy lawyer. The lawyer will make sure debtors meet the eligibility requirements and file the required paperwork to discharge debts early.