What to Expect at your Chapter 13 Bankruptcy Hardship Discharge Hearing

If you are facing bankruptcy, you have probably already been informed about the types of bankruptcy that may apply to you, as well as to which one will be most advantageous with regards to resolving your debt.  The Chapter 13 bankruptcy is the most common form of bankruptcy issued to individuals with regular income, and it basically consists of a restructuring process where you are allowed to repay your debt over a predetermined period of time without being hassled or otherwise litigated against by your creditors.  However, if you become unable to pay your debts under a Chapter 13 bankruptcy repayment plan, you may need to seek a Chapter 13 hardship discharge.

What to Expect at a Chapter 13 Hardship Discharge Hearing

If you have applied for a hardship discharge, you are asking the court to release you of any remaining responsibility for repaying the debt that you agreed to repay as part of your Chapter 13 settlement.  There are some things you should know about the hearing process and what to expect at a Chapter 13 hardship discharge hearing.

• At your chapter 13 hardship discharge hearing, you will be required to present evidence as to why you are claiming a hardship discharge and why you have been unable to continue paying your debts as originally arranged during the settlement. 
• A hardship discharge is typically only granted if you have lost your remaining income, such as through injury, disability, or a family medical emergency wherein you are required to care for an ailing family member or pay excessive medical bills that are necessary to keep you alive. 
• Presenting this evidence to the court is the key part of a chapter 13 hardship discharge hearing, as the court will want to know why you are not able to continue to repay your debts.

Once you are at the hardship hearing, you may expect to hear testimony from your creditors objecting to the hardship discharge being granted.  They may have conflicting evidence that disputes your claim that you are unable to repay the debts as agreed upon during your settlement.  They may also ask the court to restructure your settlement plan to allow you to repay them over a longer period of time, in order to receive the maximum amount of money they are able to out of the arrangement.

Finally, you can expect that the judge at your Chapter 13 hardship discharge hearing will take into account the advice of the court-appointed trustee who has been guiding you through the process, and after viewing all of the available information which has been presented to him, he or she will make a decision about whether or not your hardship discharge should be granted, and issue a ruling either at that time, or at a specified date after the hearing has concluded.

Getting Help

If you are having trouble and plan to seek a Chapter 13 hardship discharge, then consult with an experienced bankruptcy attorney who can help maximize the possibility of your discharge being granted.