What are some debts that are not discharged with a Hardship Discharge?

In a Chapter 13 bankruptcy once you complete making all payments under the payment plan your debts will be discharged. If for some reason you are unable to complete your payments under the payment plan, you can request the court of a hardship discharge.

To be eligible for a hardship discharge, you must show that your inability to make the payments is caused by reasons beyond your control. If reasons like a sudden purchase of a high end luxury car or some other expensive item prevented you from making the payments, then you will not receive a hardship discharge. To receive a hardship discharge, your creditors must have received at least the amount they would have received if you had opted for a Chapter 7 bankruptcy instead. If modification of your payment plan would enable you to complete the payments, then you will not be eligible for a hardship discharge.

A Chapter 13 hardship discharge does not discharge all your debts. Generally the following debts are not discharged if you receive a hardship discharge:

• Debts which are not part of your bankruptcy proceeding.
• Student loans. You can get a discharge of student loans in case the repayments will cause severe financial hardship.
• Taxes. You will be still liable for most of your federal, state and local tax debts.
• Alimony and Child Support.
• DUI fines
• Undischarged debts from bankruptcy previously dismissed due to misfeasance or fraud
• Court imposed fines

If you cannot make your payments according to your Chapter 13 bankruptcy plan, consult with an experienced bankruptcy attorney. The attorney can assist you apply for a hardship discharge.